Indian tech startups raised over Rs 94,000 crore in 2025, Tracxn data reveals

India’s tech startups raised $10.5 billion (around Rs 94,000 crore) in 2025, down 17% from last year, retaining the position as the world’s third-largest funded ecosystem, according to Tracxn’s India Tech Annual Funding Report 2025.

Despite a more cautious funding environment, India continued to rank behind only the United States and the United Kingdom, and ahead of China and Germany.

The report shows that total funding in 2025 fell from $12.7 billion in 2024 and was 4% lower than the $11.0 billion raised in 2023. Funding trends diverged sharply by stage. Seed-stage startups raised $1.1 billion during the year, a 30% decline from 2024 and 25% lower than in 2023.

Early-stage funding proved more resilient, rising to $3.9 billion, up 7% year-on-year and 11% higher than 2023 levels. Late-stage funding dropped to $5.5 billion, down 26% from 2024 and 8% from 2023.

Neha Singh, Co-Founder of Tracxn, said, “India’s tech ecosystem continues to demonstrate strong fundamentals and global relevance. 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.”

Large deals remained fewer but meaningful. India recorded 14 funding rounds of $100 million or more in 2025, compared with 19 in 2024 and 16 in 2023. These were led largely by transportation and logistics tech, environment tech and auto tech. Notable transactions included Erisha E Mobility’s $1.0 billion Series D round, Zepto’s $300 million Series H raise and GreenLine’s $275 million Series A funding.

Women-co-founded tech startups attracted $1.0 billion in funding during the year, with prominent rounds such as GIVA’s $62 million Series C and AMNEX’s $52 million Series A. Retail and enterprise applications emerged as the most funded segments among these companies. Bengaluru, Mumbai and Delhi continued to dominate women-led startup activity.

At a sector level, enterprise applications, retail and fintech remained the top performers. Enterprise applications drew $2.6 billion in 2025, a 17% decline from 2024 and 12% lower than 2023. Retail startups raised $2.4 billion, down 17% year-on-year and 21% from 2023, while fintech funding stood at $2.2 billion, a 5% drop from 2024 and 9% lower than two years ago.

Mergers and acquisitions activity showed mixed trends. India’s tech ecosystem recorded 136 acquisitions in 2025, up 7% from 127 in 2024 but lower than the 153 deals seen in 2023. The largest transaction of the year was Diginex’s $2.0 billion acquisition of Resulticks, followed by Magma General Insurance’s $516 million acquisition by DS Group and Patanjali Ayurved.

Exit activity strengthened through public markets. India saw 42 tech IPOs in 2025, a 17% increase over 2024 and a 62% rise compared with 2023. Key listings during the year included Meesho, Aequs and Ravel. Unicorn creation remained steady at five new unicorns, unchanged from 2024 but significantly higher than the two created in 2023.

Geographically, Bengaluru accounted for 32% of total funding, maintaining its lead as India’s largest startup hub, followed by Mumbai with 18%. On the investor front, Inflection Point Ventures, Venture Catalysts and Antler were the most active at the seed stage. Peak XV Partners, Accel and Elevation Capital led early-stage investments, while Sofina, SoftBank Vision Fund and Mars Growth Capital were the most active late-stage backers during the year.