India Startup Funding Falls 25% in H1 2025, Ranks Third Globally: Tracxn Report
India’s tech startup ecosystem raised $4.8 billion in the first half of 2025, according to Tracxn’s ‘India Tech Semi-Annual Funding Report H1 2025’. This represents a 25% decline from $6.4 billion in H1 2024 and a 19% drop from $5.9 billion in H2 2024. Despite the decrease, India moved up from fourth to third place globally in startup funding, surpassing Germany and Israel. The United States and United Kingdom maintained their positions as the top two.
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Neha Singh, co-founder of Tracxn, noted, “While funding volumes have decreased compared to the previous year, India’s tech ecosystem continues to demonstrate resilience and maturity. Strong interest in sectors like transportation, retail, and enterprise tech signals investor confidence in solving significant structural challenges.” The report also highlighted that quality IPOs and landmark acquisitions reflect the ecosystem’s ability to create long-term value.
Funding by Stage
Funding decreased across all investment stages. Seed-stage startups raised $452 million, down 23% from H2 2024 and 44% lower than the $802 million raised in H1 2024. Early-stage investments totaled $1.6 billion, a 6% decline from H2 2024 and 16% lower year-on-year. Late-stage funding stood at $2.7 billion, reflecting a 25% sequential decline and 27% drop from H1 2024.
Five Indian startups secured funding rounds exceeding $100 million in H1 2025, down from nine such deals in H2 2024 and 10 in H1 2024. The largest among them was Erisha E Mobility, which raised $1.0 billion in a Series D round. Other notable deals included GreenLine’s $275 million Series A round and Infra.Market’s $222 million Series F funding.
Sectoral Performance
Transportation and Logistics Tech emerged as the top-performing sector in H1 2025, attracting $1.6 billion — a 104% rise from H2 2024 and a 54% increase from H1 2024. Retail followed with $1.2 billion, down 32% from H1 2024 but up 25% from H2 2024. Enterprise Applications garnered $1.1 billion, falling 21% from H2 2024 and 26% year-on-year.
IPOs and Unicorns
Twelve startups went public in H1 2025, compared to 21 during the same period last year. Notable market debuts included Ather Energy, Tankup, SS Innovations International, and Infonative Solutions. Two unicorns emerged in H1 2025, a slight decline from three in H1 2024. Acquisition activity increased significantly, with 73 deals recorded — a 35% rise from the 54 acquisitions reported in H1 2024.
Leading Cities and Investors
Bengaluru retained its position as the top city for startup funding, accounting for 26% of the total raised, followed closely by Delhi at 25%. Top investors included LetsVenture, AngelList, and Accel. In seed-stage funding, Venture Catalysts, 100X.VC, and Antler were most active. Among venture capital firms, Accel (US) made the most investments (30 rounds), while Blume Ventures (India) added seven new startups to its portfolio.
