India’s manufacturing startups have attracted $1.92 billion in funding so far in 2026, a sharp rise from $164 million in 2020, according to data from Venture Intelligence cited by livemint.com. The number of deals in the sector also increased from 31 in 2020 to 127 in 2026, reflecting growing investor interest amid the country’s push to boost domestic manufacturing.
The surge in funding follows Covid-related supply-chain disruptions and rising protectionism globally, which prompted companies to seek alternative supply chains. Abhishek Srivastava, managing partner at venture capital firm Kae Capital, said the pandemic highlighted the importance of supply-side hedges and positioned India as a viable Plan B for global supply chains. Kae Capital has invested in manufacturing startups like Zetwerk, a B2B manufacturing platform preparing for an IPO.
This growth in manufacturing startups aligns with India’s broader policy efforts to strengthen domestic production and reduce dependency on imports. Startups such as Pulse, a medical equipment maker, and Scimplify, a specialty chemicals manufacturer with an end-to-end supply chain platform, have seen rising domestic demand. The increase in funding and deals signals confidence in the sector’s potential to scale before expanding globally.
According to Venture Intelligence data cited by livemint.com, the manufacturing startup sector’s funding jumped more than tenfold in six years, underscoring a significant shift in India’s startup landscape driven by supply-chain realignments and policy support.