In 2025, Indian startups raised approximately $11 billion through over 936 deals, marking an 8% decrease from the $12 billion raised in 2024 across 993 deals. Despite this decline, the year was notable for the increased interest in emerging sectors like AI, deeptech, and real estate tech. Initial public offerings (IPOs) were a significant trend, with 18 startups entering public markets and raising around INR 20,000 crore, delivering substantial returns to investors from firms like Peak XV and Tiger Global.
While private funding stabilized, the figures remained far from the $42 billion raised in 2021. Investors have noted that the peak funding years of 2021 and 2022 were anomalies, and the current funding landscape represents a new normal. The quality of capital improved, with domestic funds and corporate investors playing larger roles. The Indian startup ecosystem is maturing, supported by improved internet access, a broader distribution of technical talent, and the rise of incubators and research centers.
Growth stage funding increased by 14% to $4 billion in 2025, while late-stage funding fell by 14% to $6 billion. The number of mega funding deals over $100 million dropped significantly. Despite this, the number of late-stage startups reaching unicorn status remained stable. Investors like SoftBank and Tiger Global reduced their investments, but a return is anticipated with a focus on AI-driven investments.
Fintech, enterprise tech, and ecommerce remained top sectors for investment. AI and deeptech sectors gained traction, with government initiatives supporting deeptech funding. Bengaluru led in startup funding, raising $4.5 billion, followed by Delhi NCR with $2.2 billion, while Mumbai’s funding decreased to $2 billion.
