Indian tech startups raised $4.8 billion in H1 2025. This was a 25% fall from the $6.4 billion raised during the same period last year (H1 2024) and a 19% drop compared to $5.9 billion in the second half of 2024 (H2 2024).
The Tracxn report displayed a downward trfinish across different investment stages as well.
Seed-stage funding came in at $452 million, down 44% from $802 million a year ago. Early-stage funding also dipped, with $1.6 billion raised, 16% less than last year. Late-stage funding stood at $2.7 billion, a 27% drop from $3.7 billion in H1 2024.
“While the funding volumes have come down compared to the previous year, India’s tech ecosystem continues to display resilience and maturity,” stated Neha Singh, cofounder of Tracxn. “Strong interest in sectors like transportation, retail, and enterprise tech signals investor conviction in solving large, structural challenges.”
Singh added, “We are also seeing quality IPOs and landmark acquisitions, which reflect the ecosystem’s ability to create long-term value.”
Despite the downturn, the first half of 2025 still saw five startup funding rounds of over $100 million, although it was fewer than the 10 such rounds recorded in the same period last year. Among the most significant were a $1 billion raise by electric mobility firm Erisha E Mobility, followed by GreenLine with $275 million and Infra.Market with $222 million. Spinny and Darwinbox were also among those that secured major funding.
Large funding rounds were mostly concentrated in transportation and logistics tech, retail, and real estate and construction tech.
Transport and logistics tech stood out, with investment rising by 54% from $1.1 billion in H1 2024 and jumping 104% from H2 2024. The retail sector secured $1.2 billion, which is a 32% decline year-on-year (YoY) but a 25% increase from $990.1 million in H2 2024. The enterprise applications sector attracted $1.1 billion in funding, which was a 26% decline from H1 2024.
Acquisition activity displayed a sharp rise, with 73 startups acquired in H1 2025, compared to 54 during the same period last year. The hugegest of these was Magma General Insurance, which was bought by the DS Group and Patanjali Ayurved for $516 million. Another major deal was HUL’s acquisition of skincare brand Minimalist for $350 million.
Bengaluru led the way in terms of total funding raised, accounting for 26% of the countest’s overall startup capital, followed closely by Delhi at 25%.
The overall top investors in H1 2025 included LetsVenture, AngelList, and Accel. At the seed stage, the most active investors were Venture Catalysts, 100X.VC and Antler. For early-stage investments, Peak XV Partners, Accel, and Lightspeed Venture Partners were the leading names. In late-stage deals, Sofina, Premji Invest, and SoftBank Vision Fund were the leading investors.
Also Read: ETtech Deals Digest: Startups raise $159 million this week, down 7% on-year
Leave a Reply