India's funding winter continues as 2025 tech startup funding drops 17% to $10.5B

Marking continuing of funding winter in 2025, India’s tech startups raised a 17% decline in tech startup funding to $10.5 billion in 2025, down from $12.7 billion in 2024, and a 4% drop compared to $11B raised in 2023, according to the India Tech Annual Funding Report 2025 by Tracxn. However, despite the slowdown, India continued to rank as the third-highest funded tech ecosystem globally, behind only the US and the UK, and ahead of China and Germany.

Funding trends varied across stages. Seed-stage saw a total funding of $1.1B in 2025, marking a 30% drop from $1.5B raised in 2024. Early-stage funding, however, showed resilience, rising to $3.9B in 2025, a 7% increase from $3.7B in 2024. Late-stage funding saw a massive decline of 26% to $5.5B from $7.5B in 2024. "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 focused on building scalable, high-quality businesses," says Neha Singh, Co-Founder of Tracxn. 

In 2025, India saw 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 $1.0B Series D round, Zepto’s $300M Series H round, and GreenLine’s $275M Series A funding.

Women co-founded tech startups in India attracted $1.0B in funding in 2025, with notable rounds such as GIVA’s $62M Series C and AMNEX’s $52M Series A. Total 33 acquisitions were completed during the year, and Bengaluru, Mumbai, and Delhi continued to lead women-led startup activity. 

The report highlights that enterprise applications, retail, and fintech emerged as the top-performing sectors in 2025. Enterprise applications received $2.6B in funding, reflecting a 17% decline compared to $3.2B raised in 2024; retail secured $2.4B in funding, marking a 17% drop from $2.9B in 2024; and fintech raised $2.2B, a 5% decline from $2B in 2024.

Total 136 acquisitions were recorded, which is a 7% increase compared to 127 acquisitions in 2024. The largest deal was Resulticks’ $2.0B acquisition by Diginex, making it the highest-valued acquisition of the year, followed by Magma General Insurance’s $516M acquisition by DS Group and Patanjali Ayurved.

On the exit front, 42 IPOs were seen in 2025, up 17% from 36 IPOs in 2024, with major ones including Meesho, Aequs, and Ravel. Five unicorns were also created in 2025, same as compared to 2024. City-wise, Bengaluru accounted for 32% of total funding, maintaining lead, 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.