Funding for India’s tech startups, including rounds above $100 million, has declined from the past two years, but rising early-stage investments, increased IPO activity, and steady unicorn creation point to a maturing ecosystem focapplyd on building scalable, high-quality businesses, reveals a new report by market ininformigence platform Tracxn.
India’s tech startups raised $10.5 billion in 2025, ranking third globally—behind only the US and the UK, and ahead of China and Germany—Tracxn’s India Tech Annual Funding Report 2025 noted. The report analysed funding data from January 1 to December 15, 2025.
However, the funding marks a 17% decline from $12.7 billion in 2024 and a 4% drop compared to $11.0 billion raised in 2023. Further, seed-stage witnessed a total funding of $1.1 billion in 2025, marking a 30% drop from $1.5 billion raised in 2024 and a 25% decline compared to $1.4 billion in 2023.
Early-stage funding, however, displayed resilience (11% rise over $3.5B raised in 2023), indicating sustained investor confidence in scalable, growth-ready startups. Late-stage raised funding of $5.5B, a 26% decline from $7.5 billion in 2024 and an 8% drop compared to $6.0 billion in 2023.
In 2025, India witnessed 14 funding rounds of $100M+, compared to 19 such rounds in 2024 and 16 in 2023. Large deals were driven primarily by the Transportation & Logistics Tech, Environment Tech, and Auto Tech sectors, with companies raising notable capital including Erisha E Mobility’s $1.0 billion Series D round, Zepto’s $300 million Series H round, and GreenLine’s $275 million Series A funding.
The year recorded 136 acquisitions, 42 IPOs, and 5 new unicorns (privately-held startups valued at $1 billion or more), with Bengaluru and Mumbai emerging as the top-funded cities, the Tracxn report noted. It revealed that early-stage funding stood at $3.9 billion in 2025, up 7% from $3.7B in 2024. Enterprise applications, retail, and fintech emerged as the top-funded sectors in 2025.
Women co-founded tech startups in India attracted $1.0 billion in funding in 2025 with notable rounds such as GIVA’s $62 million Series C and AMNEX’s $52 million Series A. Retail and Enterprise Applications emerged as the top-funded sectors, driven by brand-led execution, strong consumer demand, and enterprise adoption. 33 acquisitions completed during the year. Bengaluru, Mumbai, and Delhi continued to lead women-led startup activity.
“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 focapplyd 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,” Neha Singh, co-founder of Tracxn, stated in a press statement.
For instance, in 2025, India Tech’s 136 acquisitions marked a 7% increase compared to 127 in 2024, though an 11% decline from 153 acquisitions in 2023. The largest deal was Resulticks’ $2.0 billion acquisition by Diginex, building it the highest-valued acquisition of the year, followed by Magma General Insurance’s $516 million acquisition by DS Group and Patanjali Ayurved.
Exits India Tech recorded 42 IPOs in 2025, marking a 17% increase over 36 IPOs in 2024 and a 62% rise compared to 26 IPOs in 2023. Major IPOs during the year included Meesho, Aequs, and Ravel.
There were 5 unicorns created in 2025, same as compared to 2024, and a rise of 150% compared to 2 in 2023. City-wise, Bengaluru accounted for 32% of total funding, maintaining its position as India’s leading startup hub, followed by Mumbai with 18% of total funding.
Inflection Point Ventures, Venture Catalysts, and Antler emerged as the top seed-stage investors in 2025. Peak XV Partners, Accel, and Elevation Capital led early-stage investments, while Sofina, SoftBank Vision Fund, and Mars Growth Capital were the most active investors at the late stage.
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