India’s Tech Funding Slips 23% In 9M 2025 To $7.7 Bn, But Unicorns And IPOs Sig ...
India’s technology startup ecosystem raised USD 7.7 billion in the first nine months of 2025 (9M 2025), a 23 per cent decline from USD 10.1 billion in 9M 2024, according to Tracxn’s latest India Tech Funding report.The figure also represents a 6 per cent dip compared with USD 8.3 billion in 9M 2023. Despite the slowdown, India retained its position as the third-highest funded country globally, behind only the US and UK, and ahead of Germany and France.
Funding trends varied significantly across stages. Seed-stage investments fell sharply to USD 727 million, down 39 per cent from USD 1.2 billion in 9M 2024 and 34 per cent from USD 1.1 billion in 9M 2023. Early-stage funding totaled USD 2.7 billion, largely on par with 9M 2023 but down 10 per cent from the previous year. Late-stage funding saw USD 4.3 billion raised, a 27 per cent drop from USD 5.9 billion in 9M 2024 and a 4 per cent decline compared to 9M 2023.
In 9M 2025, 10 startups raised USD 100 million or more, down from 16 in 9M 2024. Leading rounds included Erisha E Mobility (USD 1 billion, Series D), GreenLine (USD 275 million, Series A) and Infra.Market (USD 222 million, Series F). The median round size doubled to USD 1.5 million from USD 683,000 in 9M 2024, pointing to a larger, more mature funding rounds.
“India climbing to the 3rd rank globally reflects the resilience and adaptability of our startup ecosystem. What we are witnessing is a clear shift toward maturity, with rising acquisitions, steady IPO activity, and continued unicorn creation providing balanced exit pathways for founders and investors. At the same time, sectors such as Enterprise Applications, Retail, and Transportation & Logistics Tech are driving long-term investor confidence and fueling India’s digital transformation,” said Neha Singh, Co-Founder of Tracxn.
Sectoral Highlights
Enterprise Applications topped sectoral funding with USD 2.3 billion, a 6 per cent decline from 9M 2024 but a 2 per cent rise over 9M 2023. Retail attracted USD 2 billion, down 18 per cent from 9M 2024 yet up 15 per cent from 9M 2023. Transportation & Logistics Tech raised USD 1.79 billion, a 17 per cent increase over 9M 2024.
Exits And IPOs Gain Momentum
Acquisition activity grew 15 per cent year-on-year (YoY), with 110 deals in 9M 2025, led by Resulticks’ USD 2 billion buyout by Diginex. Magma General Insurance and Patanjali Ayurved also featured among top acquisitions. Bengaluru remained the hub for M&A activity, accounting for 35 deals, followed by Mumbai (19), Gurugram (11) and Delhi (9).
IPO activity remained strong, with 26 listings in 9M 2025. Real Estate & Construction Tech and Enterprise Applications led with six IPOs each, while Energy Tech saw five companies go public. Notable IPOs included Urban, DevX, BlueStone and iCodex. Accel, Hero MotoCorp and Saama Capital were among investors actively exiting via IPOs.
Unicorn Landscape
Four new unicorns emerged in 9M 2025, taking India’s tally to 122, with 22 having already exited through IPOs or acquisitions. Bengaluru dominated the unicorn map with 53, followed by Gurugram (20) and Mumbai (18). Retail (USD 34.9B) and Enterprise Applications (USD 18.9B) lead in cumulative equity funding raised by unicorns.
Zerodha emerged as the most profitable unicorn, reporting USD 1.2 billion in revenue and USD 663 million in profit for FY 2023-24.
Bengaluru-based startups continued to attract the largest share of funding, accounting for 31 per cent, followed by Delhi at 18 per cent.
Top all-time investors included LetsVenture, AngelList and Accel, while Inflection Point Ventures, Venture Catalysts and Antler led seed-stage investments. Peak XV Partners, Vertex Ventures and Accel were prominent in early-stage rounds, and Premji Invest, Sofina and SoftBank Vision Fund dominated late-stage deals.
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