CHENNAI: In the first nine months of 2025, Indian tech startups raised $7.7 billion, a 23 percent decline from $10.1 billion in the same period of 2024 and a 6 percent fall from $8.3 billion in 2023. Despite this dip, India ranked as the third-most funded market globally, behind only the United States and the United Kingdom, but ahead of Germany and France, according to the latest report, India Tech Funding 9M 2025, by Tracxn, a leading market intelligence platform.
The report, which says the funding trends varied across stages, explained that the seed-stage startups raised $727 million, down 39 percent from $1.2 billion in 2024 and 34 percent from $1.1 billion in 2023. Early-stage funding stood at $2.7 billion, 10 percent lower than the $3.0 billion raised in 2024 but broadly on par with 2023 levels. Late-stage investments totaled $4.3 billion, marking a 27 percent decline from $5.9 billion in 2024 and a 4 percent drop compared with $4.5 billion in 2023.
Commenting on the findings, Neha Singh, Co-Founder of Tracxn, said, "India’s climb to the third rank globally underscored the resilience and adaptability of its startup ecosystem."
"The market is showing signs of maturity, with rising acquisitions, steady IPO activity, and sustained unicorn creation offering balanced exits for founders and investors," she added.
The sectors such as Enterprise Applications, Retail, and Transportation & Logistics Tech continue to drive investor confidence and power India’s digital transformation, Singh noted.
The January-September period witnessed 10 funding rounds above $100 million, compared with 16 in 2024 and 15 in 2023. Among the most notable were Erisha E Mobility’s $1 billion Series D, GreenLine’s $275 million Series A, and Infra. Market’s $222 million Series F. Other major rounds included those raised by Access Healthcare and Groww. The median round size doubled to $1.5 million from $683,000 a year earlier, the report said.
Sector-wise, Enterprise Applications remained the top performer, attracting $2.3 billion, a slight decline of 6 percent from $2.5 billion in 2024 but an increase of 2 percent over $2.2 billion in 2023. Retail startups secured $2.0 billion, down 18 percent from $2.4 billion in 2024 but up 15 percent from $1.7 billion in 2023. Transportation and Logistics Tech raised $1.79 billion, 17 percent higher than the $1.53 billion recorded in 2024 but 2 percent below the $1.82 billion achieved in 2023.
Exit activity also gained momentum. There were 110 acquisitions in the first nine months of 2025, a 15 percent increase from 96 in 2024, though slightly lower than the 116 deals seen in 2023. The biggest transaction was the $2 billion acquisition of Resulticks by Diginex, followed by the $516 million acquisition of Magma General Insurance by DS Group and Patanjali Ayurved, the report highlighted.
Enterprise Applications accounted for the largest share of acquisitions, led by demand for cloud and AI solutions. Bengaluru was the busiest hub with 35 deals, ahead of Mumbai with 19, Gurugram with 11, and Delhi with 9. Peak XV Partners and Elevation Capital were among the most active investors in exit deals, leading 14 and 8 rounds respectively.
IPO activity remained robust, with 26 companies going public during this period. Notable listings included Urban, DevX, BlueStone, and iCodex. Real Estate and Construction Tech, along with Enterprise Applications, accounted for six IPOs each, while Energy Tech contributed five, underscoring rising demand for clean energy solutions. Investors such as Accel, Hero MotoCorp, and Saama Capital were active participants, recording 12, 8, and 8 IPO exits respectively.
India also saw the creation of four new unicorns in 9M 2025, compared with five in 2024 and one in 2023. The country now counts 122 unicorns in total, of which 22 have already exited through IPOs or acquisitions, signaling greater maturity in the ecosystem. Bengaluru continues to dominate with 53 unicorns, followed by Gurugram with 20 and Mumbai with 18. Retail and Enterprise Applications have emerged as the leading unicorn sectors by cumulative equity funding, raising $34.9 billion and $18.9 billion respectively. On the profitability front, Zerodha stood out with $1.2 billion in revenue and $663 million in profit in FY 2023–24, the Tracxn report said.
Bengaluru startups accounted for the largest share of funding at 31 percent, with Delhi following at 18 percent. LetsVenture, AngelList, and Accel were named as the top all-time investors. Inflection Point Ventures, Venture Catalysts, and Antler dominated seed-stage deals, while Peak XV Partners, Vertex Ventures, and Accel led early-stage activity. At the late stage, Premji Invest, Sofina, and SoftBank Vision Fund emerged as the most active investors, shows the report.