Tracxn Telangana Tech Annual Funding Report 2025 indicates a significant recalibration in the state’s technology investment landscape, with total funding contracting sharply and acquisition activity accelerating during the year.
According to insights released by Tracxn on January 29, 2026, tech companies in Telangana raised a total of $236M in 2025, reflecting a 64% decline from the $674M raised in 2024 and a 3% drop compared to $244M raised in 2023.
The report outlines funding trends across stages, sector-wise performance, exits, acquisitions, and investor participation, highlighting a pronounced pullback in late-stage capital alongside relatively stable seed and early-stage investments.
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Tracxn Telangana Tech Annual Funding Report 2025: Stage-Wise Funding Trends
As per the Tracxn Telangana Tech Annual Funding Report 2025, seed-stage funding stood at $62.1M in 2025, marking a 21% decline from $78.1M in 2024 while remaining 14% higher than the $54.7M raised in 2023.
Early-stage funding totaled $159M, down 17% from $191M in 2024 but up 5% compared to $152M in 2023.
In contrast, late-stage funding fell sharply to $14.8M in 2025, representing a 96% decline from $405M raised in 2024 and a 60% drop compared to $37.1M in 2023.
The year also recorded no funding rounds of $100M or more, compared to one such round in 2024 and none in 2023.
Sector Performance Led by Enterprise Applications and Environment Tech
The Telangana Tech Annual Funding Report 2025 identifies Enterprise Applications, FinTech, and Environment Tech as the top-funded sectors during the year.
Enterprise Applications attracted $115M in funding, down 42% from $197M in 2024 but up 116% from $53.4M in 2023.
FinTech companies raised $65.2M in 2025, reflecting an 11% increase over $58.8M in 2024, though down 17% from $78.1M raised in 2023.
Environment Tech recorded $59.7M in funding, up 66% from $36M in 2024 and 80% higher than $33.2M raised in 2023.
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Tracxn Telangana Tech Annual Funding Report 2025: Acquisitions Rise as IPO Activity Remains Flat
Exit activity increased notably in 2025, with tech companies in Telangana completing 12 acquisitions, up from 5 in 2024 and 6 in 2023.
The largest acquisition of the year was Reginald Men, acquired by Honasa Consumer for $21.7M, followed by Krafton’s acquisition of Nautilus Mobile for $14M.
IPO activity remained unchanged, with one company—EPW India—going public in 2025, consistent with IPO numbers recorded in both 2024 and 2023. No unicorns were created during the year, similar to the previous two years.
Tracxn Telangana Tech Annual Funding Report 2025: Hyderabad Retains Complete Capital Concentration
According to the Telangana Tech Annual Funding Report 2025, Hyderabad-based tech firms accounted for 100% of all funding raised across Telangana for the second consecutive year, underscoring the city’s continued dominance in attracting investor capital within the state.
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Tracxn Telangana Tech Annual Funding Report 2025: Investor Activity Across Stages
pi Ventures, IvyCap Ventures Advisors, and India Accelerator emerged as the most active seed-stage investors in 2025.
At the early stage, Sorin, JAFCO Asia, and Athera were the most active investors in the Telangana Tech ecosystem during the year.
Tracxn Telangana Tech Annual Funding Report 2025: Overall Snapshot
The Tracxn Telangana Tech ecosystem raised $236M in 2025, marking a sharp decline from 2024 while remaining marginally below 2023 levels.
Seed and early-stage investments accounted for the bulk of deployed capital amid a steep contraction in late-stage funding.
Enterprise Applications, FinTech, and Environment Tech led sector-wise inflows, acquisition volumes rose significantly, IPO activity remained steady, and Hyderabad continued to account for all funding activity across the state.
