India Tech Startups Raise $10.5 Billion in 2025; Funding 17% Lower Vs 2024, Says Tracxn

India's tech startups raised $10.5 billion in 2025, 17% lower than last year, but stood resolute on the third spot in the global pecking order, ahead of China and Germany, and trailing only the US and the UK, according to year-snapshot by market intelligence platform Tracxn.

Bengaluru and Mumbai emerged as the top-funded cities.

As per the report, India's tech startups raised $10.5 billion in 2025, the funding levels 17% lower than $12.7 billion in 2024 and a 4% drop compared to $11 billion in 2023.

The 'slowdown' notwithstanding, India continued to rank as the third-highest funded tech ecosystem globally, behind only the United States and the United Kingdom, and ahead of China and Germany, it said.

Funding trends petered out differently across stages.

Seed-stage witnessed a total funding of $1.1 billion in 2025, marking a 30% drop from 2024 levels and a 25% decline from 2023.

Early-stage funding, however, showed resilience, surging to $3.9 billion in 2025, a 7% increase from $3.7 billion in 2024 and an 11% rise over $3.5 billion raised in 2023, indicating sustained investor confidence in scalable, growth-ready startups.

Late-stage startups raised funding of $5.5 billion, a 26% decline from $7.5 billion in 2024 and an eight per cent drop compared to $6 billion in 2023.

Tracxn Co-Founder Neha Singh said, '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."

The growth in exits and continued investor interest across core sectors such as enterprise applications, retail, and fintech reinforce India's position as one of the world's most resilient and attractive startup markets, Singh noted.

In 2025, India saw 14 funding rounds of $100 million-plus, versus to 19 such rounds in 2024 and 16 in 2023.

Large deals were driven primarily by the transportation and logistics tech, environment tech, and auto tech sectors, with companies raising notable capital including Erisha E Mobility's $1 billion Series D round, Zepto's USD 300 million Series H round, and GreenLine's USD 275 million Series A funding.

In the startup lexicon, rounds are typically stages that a company passes through, as it evolves. The letters denoting them (series A, D, H, etc) represent new stages of maturity, valuation, and a varied goals for the funds being raised.

Women co-founded tech startups in India, attracted $1 billion in funding in 2025 with notable rounds such as GIVA's $62 million Series C and AMNEX's USD 52 million Series A.

Retail and enterprise applications were the top-funded sectors, driven by brand-led execution, strong consumer demand, and enterprise adoption, Tracxn said.

Bengaluru, Mumbai, and Delhi continued to lead women-led startup activity.

The report revealed that enterprise applications, retail, and fintech emerged as the top-performing sectors in 2025.

Enterprise applications snapped up $2.6 billion in funding (a 17% decline from 2024 and a 12% decrease from 2023).

Retail secured $2.4 billion in funding, a 17% drop from 2024 and a 21% decline compared to 2023.

FinTech, on the other hand, raised $2.2 billion in 2025, registering a 5% decline over 2024 and a 9% fall from 2023.