India Tech Annual Funding Report 2025 released by Tracxn reveals that Indian tech startups raised a total of $10.5 billion in 2025, positioning India as the third-highest funded tech ecosystem globally, behind the United States and the United Kingdom, and ahead of China and Germany.
According to the India Tech Annual Funding Report 2025, overall funding declined 17% from $12.7 billion in 2024 and fell 4% compared to $11.0 billion raised in 2023.
Despite the moderation in capital inflows, India retained its strong global standing, reflecting the ecosystem’s resilience and maturity.
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India Tech Annual Funding Report 2025 Highlights Funding Across Stages
The India Tech Annual Funding Report 2025 indicates mixed trends across funding stages. Seed-stage funding stood at $1.1 billion in 2025, marking a 30% decline from $1.5 billion in 2024 and a 25% drop from $1.4 billion in 2023.
Early-stage funding demonstrated resilience, rising 7% year-on-year to $3.9 billion, compared to $3.7 billion in 2024 and $3.5 billion in 2023. Late-stage funding reached $5.5 billion, declining 26% from $7.5 billion in 2024 and 8% from $6.0 billion in 2023.
Commenting on the findings, Neha Singh, Co-Founder of Tracxn, said that while capital deployment has become more selective, consistent early-stage activity, growing IPO momentum, and steady unicorn creation reflect a maturing ecosystem focused on scalable and sustainable businesses.
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Large Deals and Sectoral Performance
As per the India Tech Annual Funding Report 2025, India recorded 14 funding rounds exceeding $100 million, compared to 19 in 2024 and 16 in 2023.
Key large deals were driven by Transportation & Logistics Tech, Environment Tech, and Auto Tech sectors.
Notable transactions included Erisha E Mobility’s $1.0 billion Series D round, Zepto’s $300 million Series H, and GreenLine’s $275 million Series A funding.
Enterprise Applications, Retail, and FinTech emerged as the top-funded sectors in 2025. Enterprise Applications attracted $2.6 billion, down 17% from $3.2 billion in 2024 and 12% from $3.0 billion in 2023.
Retail secured $2.4 billion, a 17% decline from $2.9 billion in 2024 and a 21% drop from $3.1 billion in 2023. FinTech raised $2.2 billion, registering a 5% decline year-on-year and a 9% decrease compared to 2023.
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Women-Led Startups, Exits, and Unicorn Creation
The India Tech Annual Funding Report 2025 highlights that women co-founded startups attracted $1.0 billion in funding during the year, with notable rounds including GIVA’s $62 million Series C and AMNEX’s $52 million Series A. Bengaluru, Mumbai, and Delhi continued to dominate women-led startup activity.
India’s tech ecosystem recorded 136 acquisitions in 2025, up 7% from 127 in 2024, though down 11% from 153 in 2023.
The largest acquisition was Resulticks’ $2.0 billion acquisition by Diginex, followed by Magma General Insurance’s $516 million acquisition by DS Group and Patanjali Ayurved.
IPO activity also strengthened, with 42 IPOs in 2025, a 17% increase over 2024 and a 62% rise compared to 2023.
Major listings included Meesho, Aequs, and Ravel. The year also saw the creation of five new unicorns, matching 2024 levels and marking a significant increase from two in 2023.
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City-wise and Investor Activity
According to the India Tech Annual Funding Report 2025, Bengaluru accounted for 32% of total funding, retaining its position as India’s leading startup hub, followed by Mumbai with 18%.
Inflection Point Ventures, Venture Catalysts, and Antler led seed-stage investments, while Peak XV Partners, Accel, and Elevation Capital were prominent in early-stage funding.
Sofina, SoftBank Vision Fund, and Mars Growth Capital emerged as the most active late-stage investors.
The report covers data from 1 January 2025 to 15 December 2025.
