NEW DELHI– India’s technology startups raised $10.5 billion in 2025, ranking the country third globally in funding, ahead of China and Germany, according to a report released on Thursday.
The report by market research firm Tracxn said the performance was notable despite a 17 percent decline from the $12.7 billion raised in 2024 and a 4 percent drop from the $11 billion raised in 2023.
India ranked behind only the United States and the United Kingdom, the report said. The country’s tech ecosystem recorded 14 funding rounds exceeding $100 million in 2025, compared with 19 such rounds in 2024.
Large deals were driven mainly by the transportation and logistics technology, environment technology, and auto technology sectors, which together accounted for a significant share of capital raised during the year.
Early-stage funding rose to $3.9 billion, up 7 percent year on year, reflecting sustained investor interest in new ventures. Late-stage funding declined to $5.5 billion, down 26 percent from 2024 levels, while seed-stage funding moderated to $1.1 billion.
“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,” said Neha Singh, co-founder of Tracxn.
“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,” she added.
Startups co-founded by women attracted $1 billion in funding during the year, while retail and enterprise applications emerged as the top-funded sectors. The report attributed this trend to strong consumer demand, brand-led execution, and growing enterprise adoption.
In 2025, five new unicorns were created, up from two in 2023, signaling a rebound in high-value company creation despite tighter funding conditions.
Bengaluru accounted for 32 percent of total startup funding, retaining its position as India’s leading technology hub. Mumbai followed with 18 percent of total funding, underscoring its growing role in the country’s startup ecosystem. (Source: IANS)
