This week we released the India Deal Review: Q3 2026, which shows startup funding saw a sequential slowdown, even as larger deals drove year-on-year growth.
Startup funding dipped 5.3% to $3.86 billion across 278 deals from $4.07 billion in Q2, indicating a steady moderation in funding activity this year. Funding value, however, was 25.3% higher than the $3.08 billion recorded in Q3 2025, while deal volume fell 7% from 300 deals.
The sequential slowdown came despite a rise in megadeal activity in Q3 compared with the previous quarter. Their combined value, however, fell 28% to $1.44 billion from $2 billion.
Bengaluru-based electric two-wheeler maker Simple Energy raised the largest round during the quarter at $180 million, led by the Dr Arokiaswamy Velumani Family Office.
The India Deal Review: Q3 2026 report offers data and insights on quarterly fundraising trends; top industries and verticals; top funding destinations; megadeal value and volume; and the list of most active investors.
Moving on to other headlines from the week.
The bottom line
As part of the earnings coverage, we looked at the performance of a dozen Indonesian digital banks, which continued to expand in the first nine months of 2026. But earnings remained concentrated among a handful of lenders. The five most profitable lenders—SeaBank, Akulaku’s Bank Neo Commerce, Allo Bank, Grab’s Superbank and GoTo’s Bank Jago—contributed about 88% of the sample’s combined profit. On the other hand, six of the 12 banks reported lower earnings than a year earlier, including HiBank, which swung to a loss, and Bank Saqu, whose losses widened.
Grab has finally turned its financial services business profitable. But the Southeast Asian tech giant has a much bigger target in sight: $500 million in annual adjusted EBITDA by 2028. That is a steep climb from the $12 million in segment adjusted EBITDA it reported in the third quarter. And much of the growth hinges on acquisitions, with Superbank and the proposed Atome deal expected to contribute three-fifths of the target. With Taiwan blocking its proposed foodpanda acquisition, Grab’s fintech ambitions are taking on greater significance as it looks to deepen its financial relationships with consumers across Southeast Asia. The big question now is what it will take to turn a newly profitable business into a $500-million earnings engine.
Singapore-based cross-border payments firm Tazapay reported a 71% increase in revenue for the financial year ended March 2026, even as higher operating expenses dragged down profit. Revenue increased to $21.19 million in FY2026 from $12.42 million a year earlier, according to its latest audited financial statements filed with Singapore’s Accounting and Corporate Regulatory Authority (ACRA). Net loss, however, widened to $7.36 million from $4.28 million in FY2025. Loss before tax also rose to $6.97 million from $4.12 million.
Carlyle Group generated $5.7 billion in realised proceeds from its Global Private Equity business in the third quarter of 2026, with the $720-million sale of a stake in Japanese scientific equipment maker Rigaku among several notable exits during the period.
LP-GP corner
Bain Capital has raised more than $1.8 billion so far for its third Asia special situations fund, according to a filing with the US SEC. Bain Capital Special Situations Asia III is reportedly targeting a total corpus of $2.1 billion. Its predecessor vehicle closed at over $2 billion in 2022.
China-focused tech investor Monolith Management is seeking $561 million for its third US dollar venture fund, named Monolith Venture Fund III, as a busy fundraising calendar draws to a close. The DeepSeek- and Moonshot AI-backer’s latest fund is raising nearly double that of its predecessor fund, Monolith Venture Fund II.
ValueQuest Tristar Fund, a private equity fund focused on India’s advanced manufacturing sector, has secured over $221 million (Rs 2,100 crore) in investor commitments within 15 months of its first close.
Everstone AMC, part of Everstone Group, has raised Rs 1,700 crore ($179.3 million) in the first close of its private equity fund. The fund will invest in mid-market Indian companies, focusing on growth deals that give it control or a significant say in the businesses.
IFC is proposing to invest up to 15 million euros (about $16.7 million) in a fund targeting climate adaptation financing for MSMEs, with a focus on women-owned businesses across Asia.
This week’s Beyond the Buyout explores why financing Southeast Asia’s climate projects is only half the equation: The market must also prove exits. The recent DealStreetAsia Leadership Roundtable makes a case for a platform play in climate projects.
Exclusives
Indonesian quick commerce startup Astro is looking to raise up to $50 million in a fresh funding round at a valuation of more than $350 million, with existing investor DST Global likely to lead the round. Amazon is currently Astro’s top shareholder with a 13.47% stake, followed by co-founder & CEO Vincent T Jendra, Accel, Peak XV, and Lightspeed, according to DealStreetAsia DATA VANTAGE.
Insignia Ventures Partners is likely to lead the latest funding round for Indonesian intimate apparel brand URU Underwear, as it looks to scale its business and strengthen its position in the domestic market.
Evo Commerce, a Singapore-based e-commerce house of brands, has raised $6.4 million through the issuance of preference shares to new investors, according to filings with ACRA. AVC Capital and an investment vehicle linked to Openspace Capital accounted for most of the proceeds.
CVC Capital Partners has paused its planned sale of Vietnamese maternal and infant care hospital group Phuong Chau after preliminary offers failed to meet the private equity firm’s price expectations. Potential investors previously said to have expressed interest in Phuong Chau include GIC-backed Nhi Dong 315, Warburg Pincus and KKR.
IFC is weighing an equity investment of up to $40 million in Perennial Healthcare, to support the Singapore-based company’s expansion across Southeast Asia, including Thailand and Malaysia.
Indonesian fintech firm Flip has laid off around 70-80 employees, representing approximately 15% of its workforce, as part of its latest organisational restructuring. This marks at least the third publicly reported round of layoffs at Flip in recent years.
Funding updates
Sand.ai, a Chinese AI startup specialising in video generation, has entered the unicorn club by closing a Series A extension round at $200 million with a valuation of over $1 billion. CoStone Capital and Shenzhen-listed IT infrastructure company Wangsu Science & Technology jointly led the deal.
FMO has arranged a $172-million multi-currency syndicated loan for Mongolia’s Khan Bank. Other participants include Impact Fund Denmark, Finland’s Finnfund, BlueOrchard Microfinance Fund and ILX Funds.
Indian fine jewellery retailer GIVA has raised over $100 million in a funding round led by Multiples Alternate Asset Management, with participation from existing investors Epiq Capital and Edelweiss Discovery Fund.
Analyses and interviews
Padmanabh (Paddy) Sinha, a seasoned PE investor who has previously held senior roles at National Investment and Infrastructure Fund (NIIF), Temasek and Tata Capital, is set to lead the alternatives business at Motilal Oswal Alternates. “I am drawn to the ambition of building a leading home-grown Indian alternatives platform, backed by a deeply committed sponsor. To me, becoming one of India’s most admired alternatives platforms means earning the trust of our LPs, being valued by our portfolio partners and attracting talented professionals,” Sinha said in an exclusive interview.
Until recently, private equity was viewed as a short-term financial buyer that would cut costs and sell quickly. That perception is changing. Business owners are increasingly confronting succession challenges they cannot resolve alone while seeing more examples of PE-backed companies growing under institutional ownership. This shift is particularly relevant to specialist investors such as Nihon PMI. In Sept 2026, Nihon PMI sold senior care operator Long Life Holding back to the management team, in a deal that illustrates the case of an investor helping to scale the business so that its founding family can continue to own and operate it. Since completing its first exit, Nihon PMI has received more succession-related enquiries. “The result is that deals come to us directly rather than through a process,” CEO Satoshi Hamada says in an exclusive interview.
