In 2025, Indian startups experienced a funding decline, raising $11 billion across over 936 deals, marking an 8% drop from the previous year. Despite this, there was a notable interest in emerging sectors like AI, deeptech, and real estate tech, offering hope for the future. Initial public offerings (IPOs) were a significant trend, with 18 startups going public and raising substantial capital. The overall private funding landscape stabilized, although it remained below the peaks seen in 2021 and 2022. Investors have become more selective, focusing on quality over quantity, with domestic funds and corporate investors playing a larger role. Growth stage funding increased, while late and seed stage funding saw declines. Fintech, enterprise tech, and ecommerce remained key sectors for investment. Meanwhile, Bengaluru continued to lead in funding, with Delhi NCR and Mumbai following. The deeptech sector received increased attention, supported by government initiatives, and is expected to grow further.
Is Indian Startup Funding Set to Decline by 8% in 2025?
