Karnataka's tech sector raised $868 million in the January-March period (Q1 2026), up 7% year-on-year, according to Tracxn. Deal volume however fell 38% to 117 rounds. Bengaluru accounted for 98% of the total funding at $848 million. Early-stage funding rose 7% to $414 million across 41 rounds, while late-stage investments dropped 43% to $317 million across 11 rounds.