Indian Tech Startups Raised Over ₹94,000 Crore in 2025 Despite Funding Slowdown: Tracxn
Mon Dec 29 2025
Indian technology startups raised $10.5 billion (approximately ₹94,000 crore) in 2025, marking a 17% year-on-year decline, according to Tracxn’s India Tech Annual Funding Report 2025.
Despite the moderation in funding, India retained its position as the world’s third-largest startup funding ecosystem, ranking behind the United States and the United Kingdom, and ahead of China and Germany.
Total funding fell from $12.7 billion in 2024 and was 4% lower than 2023, reflecting a more cautious global investment climate and a clear shift toward capital efficiency and disciplined growth.
Funding Trends by Startup Stage
Funding behaviour in 2025 varied sharply across stages, highlighting a recalibration rather than a collapse.
Seed Stage: Sharp Pullback
- $1.1 billion raised
- 30% decline from 2024
- 25% lower than 2023
Investors remained highly selective at the earliest stages, prioritising strong founding teams and clearer paths to monetisation.
Early Stage: Signs of Resilience
- $3.9 billion raised
- 7% growth YoY
- 11% higher than 2023
Early-stage funding proved resilient, signalling continued confidence in startups with validated business models and early revenue traction.
Late Stage: Fewer Mega Rounds
- $5.5 billion raised
- 26% decline from 2024
- 8% lower than 2023
Late-stage funding slowed due to fewer large rounds and delayed deployment of growth capital, particularly for companies yet to demonstrate profitability.
A Maturing Startup Ecosystem
Commenting on the findings, Neha Singh, Co-Founder of Tracxn, said India’s tech ecosystem continues to demonstrate strong underlying fundamentals despite tighter capital conditions.
She highlighted:
- Disciplined capital deployment
- Steady early-stage momentum
- Rising IPO activity
- Consistent unicorn creation
Together, these trends suggest that India’s startup ecosystem is maturing—shifting focus from rapid scale to building durable, high-quality businesses.
Large Deals Still Matter
While large funding rounds were fewer, they remained significant in scale and impact.
- 14 funding rounds of $100M+ in 2025
- Compared with 19 in 2024 and 16 in 2023
Major deals were concentrated in transportation & logistics tech, environment tech, and auto tech.
Notable Rounds
- Erisha E Mobility – $1.0 billion (Series D)
- Zepto – $300 million (Series H)
- GreenLine – $275 million (Series A)
Women-Led Startups and Sectoral Trends
Women-co-founded tech startups raised $1.0 billion in 2025.
Prominent Rounds
- GIVA – $62 million (Series C)
- AMNEX – $52 million (Series A)
Among women-led ventures, retail and enterprise applications attracted the most capital, with Bengaluru, Mumbai, and Delhi NCR continuing as dominant hubs.
Sector-Wise Funding Snapshot
At a broader level, funding moderated across major sectors:
- Enterprise applications: $2.6 billion (↓17% YoY)
- Retail: $2.4 billion (↓17% YoY)
- Fintech: $2.2 billion (↓5% YoY)
Despite declines, these sectors remained core pillars of India’s startup funding landscape.
M&A, IPOs, and Unicorn Momentum
Mergers & Acquisitions
- 136 tech acquisitions in 2025
- Up from 127 in 2024, but below 153 in 2023
Largest deals included:
- Diginex acquiring Resulticks – $2.0 billion
- Magma General Insurance acquisition – $516 million by DS Group & Patanjali
IPO Activity Picks Up
- 42 tech IPOs in 2025
- 17% increase over 2024
- 62% jump compared to 2023
Notable listings included Meesho, Aequs, and Ravel, signalling improving exit opportunities via public markets.
Unicorn Creation
- 5 new unicorns in 2025
- Same as 2024, but significantly higher than 2 in 2023
Geography and Investor Activity
Top Startup Hubs
- Bengaluru: 32% of total funding
- Mumbai: 18%
Most Active Investors
- Seed stage: Inflection Point Ventures, Venture Catalysts, Antler
- Early stage: Peak XV Partners, Accel, Elevation Capital
- Late stage: Sofina, SoftBank Vision Fund, Mars Growth Capital
Final Takeaway: Recalibration, Not Retreat
The Tracxn data makes one thing clear: 2025 was a year of recalibration, not contraction, for India’s startup ecosystem.
While headline funding numbers softened, indicators such as:
- Early-stage resilience
- Rising IPO exits
- Steady unicorn creation
point to a healthier and more sustainable growth phase.
As investors prioritise quality, profitability, and execution, India’s startup ecosystem appears to be entering a more mature chapter—focused less on hype-driven scale and more on long-term value creation.
Mon Dec 29 2025
