India’s tech startups raised $10.5B in 2025, a 17% decrease from 2024. India ranks third globally in tech funding, says Tracxn.
Bengaluru and Mumbai emerged as the top-funded cities.
As per the report, India’s tech startups raised USD 10.5 billion in 2025, the funding levels 17 per cent lower than USD 12.7 billion in 2024 and a 4 per cent drop compared to USD 11 billion in 2023.
The “slowdown” notwithstanding, India continued to rank as the third-highest funded tech ecosystem globally, behind only the United States and the United Kingdom, and ahead of China and Germany, it said.
Funding trends petered out differently across stages.
Seed-stage witnessed a total funding of USD 1.1 billion in 2025, marking a 30 per cent drop from 2024 levels and a 25 per cent decline from 2023.
Early-stage funding, however, showed resilience, surging to USD 3.9 billion in 2025, a 7 per cent increase from USD 3.7 billion in 2024 and an 11 per cent rise over USD 3.5 billion raised in 2023, indicating sustained investor confidence in scalable, growth-ready startups.
Late-stage startups raised funding of USD 5.5 billion, a 26 per cent decline from USD 7.5 billion in 2024 and an eight per cent drop compared to USD 6 billion in 2023.
Tracxn Co-Founder Neha Singh said, “While capital deployment has become more disciplined, the sustained momentum in early-stage funding, rising IPO activity, and steady unicorn creation highlight a maturing ecosystem that is increasingly focused on building scalable, high-quality businesses.”
The growth in exits and continued investor interest across core sectors such as enterprise applications, retail, and fintech reinforce India’s position as one of the world’s most resilient and attractive startup markets, Singh noted.
In 2025, India saw 14 funding rounds of USD 100 million-plus, versus to 19 such rounds in 2024 and 16 in 2023.
Large deals were driven primarily by the transportation and logistics tech, environment tech, and auto tech sectors, with companies raising notable capital including Erisha E Mobility’s USD 1 billion Series D round, Zepto’s USD 300 million Series H round, and GreenLine’s USD 275 million Series A funding.
In the startup lexicon, rounds are typically stages that a company passes through, as it evolves. The letters denoting them (series A, D, H, etc) represent new stages of maturity, valuation, and a varied goals for the funds being raised.
Women co-founded tech startups in India, attracted USD 1 billion in funding in 2025 with notable rounds such as GIVA’s USD 62 million Series C and AMNEX’s USD 52 million Series A.
Retail and enterprise applications were the top-funded sectors, driven by brand-led execution, strong consumer demand, and enterprise adoption, Tracxn said.
Bengaluru, Mumbai, and Delhi continued to lead women-led startup activity.
The report revealed that enterprise applications, retail, and fintech emerged as the top-performing sectors in 2025.
Enterprise applications snapped up USD 2.6 billion in funding (a 17 per cent decline from 2024 and a 12 per cent decrease from 2023).
Retail secured USD 2.4 billion in funding, a 17 per cent drop from 2024 and a 21 per cent decline compared to 2023.
FinTech, on the other hand, raised USD 2.2 billion in 2025, registering a 5 per cent decline over 2024 and a 9 per cent fall from 2023.
