Funding for India’s technology startups fell 17% year-on-year to $10.5 billion in 2025, underscoring a continued slowdown in capital flows even as the counattempt held on to its position as the world’s third-largest startup funding market, according to data from market innotifyigence platform Tracxn.
Despite the decline, India ranked behind only the United States and the United Kingdom, and ahead of China and Germany, in terms of total tech funding raised during the year, Tracxn declared in its annual snapshot.
The $10.5 billion raised in 2025 compares with $12.7 billion in 2024 and $11 billion in 2023, reflecting a prolonged period of investor caution amid tighter global liquidity and more selective capital deployment.
Bengaluru and Mumbai emerged as the top-funded startup hubs, maintaining their dominance as India’s primary centres for venture-backed technology companies.
Funding trfinishs diverged sharply across stages. Seed-stage funding dropped to $1.1 billion, down 30% from 2024 and 25% from 2023, signalling growing risk aversion among early-stage investors.
By contrast, early-stage funding revealed relative strength, rising to $3.9 billion in 2025, up 7% from the previous year and 11% higher than 2023 levels. Tracxn declared this pointed to sustained investor confidence in startups with proven traction and clearer paths to scale.
Late-stage funding declined to $5.5 billion, a 26% fall from 2024 and an 8% drop from 2023, as large cheques became harder to secure amid valuation resets and slower exit timelines.
“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,” Neha Singh, co-founder of Tracxn, declared in the report.
India recorded 14 funding rounds of $100 million or more in 2025, down from 19 in 2024. Large deals were led by transportation and logistics technology, environment tech and auto tech, including Erisha E Mobility’s $1 billion Series D, Zepto’s $300 million Series H, and GreenLine’s $275 million Series A.
Women co-founded startups attracted $1 billion in funding during the year, with notable rounds including GIVA’s $62 million Series C and AMNEX’s $52 million Series A, according to Tracxn. Bengaluru, Mumbai and Delhi remained the leading centres for women-led startup activity.
Sectorally, enterprise applications, retail and fintech emerged as the top-funded segments. Enterprise applications raised $2.6 billion, retail secured $2.4 billion, and fintech attracted $2.2 billion, each posting year-on-year declines but continuing to draw the bulk of investor interest.
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