India’s tech startups raised $10.5 billion (round Rs 94,000 crore) in 2025, down 17% from final yr, retaining the place because the world’s third-largest funded ecosystem, based on Tracxn’s India Tech Annual Funding Report 2025.

Regardless of a extra cautious funding setting, India continued to rank behind solely the USA and the UK, and forward of China and Germany.

The report reveals that whole funding in 2025 fell from $12.7 billion in 2024 and was 4% decrease than the $11.0 billion raised in 2023. Funding tendencies diverged sharply by stage. Seed-stage startups raised $1.1 billion through the yr, a 30% decline from 2024 and 25% decrease than in 2023.

Early-stage funding proved extra resilient, rising to $3.9 billion, up 7% year-on-year and 11% larger than 2023 ranges. Late-stage funding dropped to $5.5 billion, down 26% from 2024 and eight% from 2023.

Neha Singh, Co-Founding father of Tracxn, stated, “India’s tech ecosystem continues to reveal sturdy fundamentals and international relevance. Whereas capital deployment has grow to be extra disciplined, the sustained momentum in early-stage funding, rising IPO exercise, and regular unicorn creation spotlight a maturing ecosystem that’s more and more centered on constructing scalable, high-quality companies. The expansion in exits and continued investor curiosity throughout core sectors resembling enterprise purposes, retail, and fintech reinforce India’s place as one of many world’s most resilient and enticing startup markets.”

Giant offers remained fewer however significant. India recorded 14 funding rounds of $100 million or extra in 2025, in contrast with 19 in 2024 and 16 in 2023. These had been led largely by transportation and logistics tech, setting tech and auto tech. Notable transactions included Erisha E Mobility’s $1.0 billion Collection D spherical, Zepto’s $300 million Collection H increase and GreenLine’s $275 million Collection A funding.

Girls-co-founded tech startups attracted $1.0 billion in funding through the yr, with outstanding rounds resembling GIVA’s $62 million Collection C and AMNEX’s $52 million Collection A. Retail and enterprise purposes emerged as probably the most funded segments amongst these corporations. Bengaluru, Mumbai and Delhi continued to dominate women-led startup exercise.

At a sector stage, enterprise purposes, retail and fintech remained the highest performers. Enterprise purposes drew $2.6 billion in 2025, a 17% decline from 2024 and 12% decrease than 2023. Retail startups raised $2.4 billion, down 17% year-on-year and 21% from 2023, whereas fintech funding stood at $2.2 billion, a 5% drop from 2024 and 9% decrease than two years in the past.

Mergers and acquisitions exercise confirmed combined tendencies. India’s tech ecosystem recorded 136 acquisitions in 2025, up 7% from 127 in 2024 however decrease than the 153 offers seen in 2023. The biggest transaction of the yr was Diginex’s $2.0 billion acquisition of Resulticks, adopted by Magma Common Insurance coverage’s $516 million acquisition by DS Group and Patanjali Ayurved.

Exit exercise strengthened by way of public markets. India noticed 42 tech IPOs in 2025, a 17% enhance over 2024 and a 62% rise in contrast with 2023. Key listings through the yr included Meesho, Aequs and Ravel. Unicorn creation remained regular at 5 new unicorns, unchanged from 2024 however considerably larger than the 2 created in 2023.

Geographically, Bengaluru accounted for 32% of whole funding, sustaining its lead as India’s largest startup hub, adopted by Mumbai with 18%. On the investor entrance, Inflection Level Ventures, Enterprise Catalysts and Antler had been probably the most energetic on the seed stage. Peak XV Companions, Accel and Elevation Capital led early-stage investments, whereas Sofina, SoftBank Imaginative and prescient Fund and Mars Development Capital had been probably the most energetic late-stage backers through the yr.