Marking continuing of funding winter in 2025, India’s tech startups raised a 17% decline in tech startup funding to $10.5 billion in 2025, down from $12.7 billion in 2024, and a 4% drop compared to $11B raised in 2023, according to the India Tech Annual Funding Report 2025 by Tracxn. However, despite the slowdown, India continued to rank as the third-highest funded tech ecosystem globally, behind only the US and the UK, and ahead of China and Germany.
Funding trends varied across stages. Seed-stage saw a total funding of $1.1B in 2025, marking a 30% drop from $1.5B raised in 2024. Early-stage funding, however, showed resilience, rising to $3.9B in 2025, a 7% increase from $3.7B in 2024. Late-stage funding saw a massive decline of 26% to $5.5B from $7.5B in 2024. “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,” says Neha Singh, Co-Founder of Tracxn.
In 2025, India saw 14 funding rounds of $100M+, compared to 19 such rounds in 2024 and 16 in 2023. Large deals were driven primarily by the transportation & logistics tech, environment tech, and auto tech sectors, with companies raising notable capital including Erisha E Mobility’s $1.0B Series D round, Zepto’s $300M Series H round, and GreenLine’s $275M Series A funding.
