Karnataka startups bag $868M in Q1 2026; retail second-largest sector at $275M
Bengaluru captured 98% of Karnataka's $868M Q1 haul across 117 deals. Retail/D2C drew $275M, led by Marico's $24.9M buyout of nutrition brand Cosmix and Shadowfax's IPO at $782M mcap. Seed funding rose 51% QoQ to $137M, while late-stage slipped 43% to $317M.
Karnataka startups raised $868M in Q1 2026, with retail the second-largest sector at $275M. Marico acquired Bengaluru D2C nutrition brand Cosmix for $24.9M; Shadowfax listed at $782M. Cult.fit, Porter, Ultrahuman, Supertails featured prominently.
Why this matters
Karnataka's Q1 2026 haul shows retail/D2C consolidating as a core funding pillar, with strategic M&A (Marico-Cosmix) and a major logistics IPO (Shadowfax) anchoring the quarter alongside a seed-stage rebound.
Retail-company signals steady at 619 in 90d; seed up 51% QoQ to $137M, late-stage down 43% QoQ to $317M.