NEW DELHI– India has emerged as the world’s third-largest technology startup ecosystem by funding this year, behind only the United States and the United Kingdom, according to a new report from market intelligence firm Tracxn.
Despite the global ranking, overall funding for Indian startups fell 23 percent year-over-year, totaling $7.7 billion in the first nine months of 2025. That compares with $10.1 billion during the same period in 2024 and $8.3 billion in 2023.
“India climbing to the third rank globally reflects the resilience and adaptability of our startup ecosystem,” said Neha Singh, co-founder of Tracxn. She added that the market is showing signs of maturity, with steady IPO activity, rising acquisitions, and new unicorns offering founders and investors more stable exit opportunities.
Enterprise applications led the way with $2.3 billion in funding, followed by retail at $2 billion and transportation and logistics technology at $1.79 billion. Bengaluru-based startups accounted for nearly one-third of all investment, while Delhi attracted 18 percent.
Seed funding fell sharply to $727 million, down 39 percent from last year, while early-stage investment slipped 10 percent to $2.7 billion. Late-stage deals suffered the biggest decline, dropping 27 percent to $4.3 billion. The number of mega-rounds above $100 million also dropped to 10, compared with 16 in 2024 and 15 in 2023. However, the median round size doubled to $1.5 million, signaling stronger backing for smaller firms.
Exits picked up momentum, with 110 acquisitions recorded so far in 2025, up 15 percent from the prior year, led by cloud and AI-driven enterprise application deals. India also added four new unicorns this year, bringing the national total to 122. (Source: IANS)
