Chinese investors have effectively been cut out of India’s tech sector, leaving the field clear for US and European venture capitalists in what is shaping up to be a record year of fundraising for the country’s start-ups.

Indian start-ups raised a record $7.2bn across 336 funding rounds in the quarter ended June, according to data provider Tracxn. Of those, Chinese investors participated in only 10 rounds, worth a total $745m. US investors, by contrast, participated in more than 100 rounds worth $5.7bn.

While tech giants such as Alibaba and Tencent were previously among the most influential investors in India’s fast-growing start-up scene, they have been largely sidelined by regulation introduced last year in response to rising tensions between India and China.