Maharashtra and Karnataka witnessed diverging funding activity in nine months of 2025 as large-ticket rounds thinned and late-stage capital cooled. While Maharashtra raised $2 billion in 9M 2025, up 11% from last year but a decline from 2023, Karnataka saw a steep 40% drop in funding to $2.7 billion, underscoring shifting investor sentiment.

Maharashtra tech companies raised a total of $2.0B in 9M 2025, an 11% rise compared to $1.8B in 9M 2024, a 11% decline from $2.3B recorded in 9M 2023, according to Tracxn's latest report. 

Funding activity across stages in Maharashtra displayed varied momentum in 9M 2025. Seed-stage funding stood at $196M, reflecting a 30% decline from $281M in 9M 2024. Early-stage investment registered strong growth, reaching $903M, a 69% jump compared to $535M in 9M 2024. In contrast, late-stage funding totalled $925M, marking a 10% decline from $1.0B in 9M 2024, indicating softer activity at the mature end of the market. 

The Real Estate and Construction Tech sector led funding with $555M, representing a 444% surge compared to $102M in 9M 2024. The FinTech sector recorded $477M, which is an 11% decrease compared to $533M in 9M 2024. Three $100M+ funding rounds were recorded in Maharashtra in 9M 2025, in line with the three seen in 9M 2024.

GreenLine raised $275M in a Series A round, Infra.Market secured $222M in a Series F round, and Weaver Services raised $170M in an Unattributed round, all crossing the $100M mark. These large-ticket deals were primarily driven by the Real Estate and Construction Tech, Transportation and Logistics Tech, and Retail sectors. The period also saw positive public market activity, with 7 IPOs in 9M 2025, up 75% from 4 in 9M 2024.

Companies that went public included Seshaasai, Anand Rathi, Jaro Education, and Electronics Bazaar. In addition, one new unicorn emerged in 9M 2025, compared to none in both 9M 2024. Tech companies in Maharashtra recorded 24 acquisitions in 9M 2025, matching the total in 9M 2024. The state saw significant M&A activity, with the acquisition of Magma General Insurance by DS Group and Patanjali Ayurved for $516M, the largest deal in 9M 2025. 

Mumbai remained the leading hub for startup funding, accounting for 65% of all investments raised by tech companies in Maharashtra during 9M 2025. Venture Catalysts, Antler, and Rainmatter emerged as the most active investors at the seed stage; Elevation Capital, Lightspeed Venture Partners, and Bessemer Venture Partners in the early stage; and Sofina led late-stage investment activity in Maharashtra.

40% drop in tech funding in Karnataka

Karnataka’s tech landscape saw shifts in investment sentiment during the period, with a total of $2.7B was raised in 9M 2025, a 40% drop compared to $4.5B in 9M 2024. The period witnessed a noticeable slowdown in large-ticket rounds, impacting overall capital flow into the ecosystem.

Funding activity across stages in Karnataka reflected mixed but steady movement in 9M 2025. Seed-stage funding stood at $287M, representing a 22% decline from $366M in 9M 2024. Early-stage investment showed strong progress, reaching $1.1B, a 20% increase compared to $914M in 9M 2024. Late-stage funding totalled $1.3B, reflecting a 59% decrease from $3.2B in 9M 2024. 

The FinTech sector recorded the highest $841M in funding, an increase of 38% compared to $608M in 9M 2024. The Enterprise Applications sector saw $830M in 9M 2025, representing a 19% decrease from $1.0B in 9M 2024. The Retail sector recorded $730M in 9M 2025, a 43% drop from $1.3B in 9M 2024. 

9M 2025 registered two funding rounds above $100M, compared to eight such rounds in 9M 2024. Groww secured $202M in a Series F round, while Jumbotail raised $120M in a Series D round. A major part of these $100M+ funding rounds came from FinTech and Retail sectors. 

Karnataka’s tech ecosystem saw 2 IPOs in 9M 2025, a 67% drop from 6 in 9M 2024. Ather Energy and BlueStone were the companies that went public during this period. In 9M 2025, 3 new unicorns emerged, representing a 40% drop from 5 in 9M 2024. 

Tech companies in Karnataka saw 35 acquisitions in 9M 2025, a 5% drop compared to 37 in 9M 2024. The highest-valued acquisition was Groww acquiring Fisdom for $150M, followed by ICRA acquiring Fintellix for $26M. 

Bengaluru-based tech firms accounted for nearly all of the funding raised by tech companies across Karnataka in 9M 2025, positioning the city as the state’s dominant hub for startup investments. 

Venture Catalysts, Antler, and Rainmatter emerged as the most active investors at the seed stage; Accel, Peak XV Partners, and Elevation Capital at the early stage; and Sofina, Softbank Vision Fund, and Mars Growth Capital led the late-stage investment activity in the Karnataka tech ecosystem.