India’s tech startup ecosystem has maintained its position as the third-largest globally in terms of venture funding in 2025, even as overall inflows slowed. The amount raised by startups in the country rose to $7.7 billion in 2025 through the first nine months, according to a Tracxn report, which places it third worldwide behind both the US and the UK but ahead of Germany and France. However, the total raised is down 23% from the $10.1 billion raised during the same nine months in 2024 and 6% from the $8.3 billion raised in 2023.
Funding trends
Seed-stage funding stood at $727 million, a 39% decline year-on-year, while early-stage flows fell 10% to $2.7 billion. Investments in late-stage funding took the sharpest fall, down 27% to $4.3 billion, versus $5.9 billion for last year. Despite the contraction, the median round size doubled to $1.5 million in 2025 from $683,000 in 2024, signalling larger cheques for fewer companies.
The quarter also included 10 funding rounds of $100 million or above, including Erisha E Mobility ($1 billion, Series D), GreenLine ($275 million, Series A), and Infra. Market ($222 million, Series F). Access Healthcare and Groww were notable rounds as well.
Enterprise Applications, Retail, and Transportation & Logistics Tech were the top-funded sectors. Enterprise Applications saw an increased value of $2.3 billion, Retail saw an increased value of $2.0 billion, and finally, Transportation & Logistics Tech saw increased funding totals of $1.79 billion, which was an increase of total value from the prior year for the latter two segments.
Exits and IPOs
India’s ecosystem exhibited greater stages of maturity in exits. A total of 110 exits were recorded across 9M 2025, which is an increase from the 96 there were a year prior, a 15% increase. The largest deal was Resulticks’ $2.0 billion acquisition by Diginex, followed by Magma General Insurance’s $516 million buyout by DS Group and Patanjali Ayurved.
Activity in India’s IPO market continued to thrive, with 26 companies either deciding to become publicly traded, or choosing a secondary offering, including Urban, DevX, BlueStone and iCodex. Real Estate & Construction Tech and Enterprise Applications accounted for the bulk of listings, while Energy Tech gained momentum with five IPOs.
“India climbing to the third 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,” Neha Singh, Co-Founder of Tracxn, said.
India added four new unicorns in the first nine months, bringing the total to 122, of which 22 have already exited through public markets or acquisitions. Bengaluru remains the epicentre, home to 53 unicorns, followed by Gurugram at 20 and Mumbai at 18. At the city level, Bengaluru and Delhi accounted for nearly half of the total funding, at 31% and 18% respectively.
LetsVenture, AngelList and Accel emerged as the top all-time investors in the country. At the stage level, Inflection Point Ventures, Venture Catalysts and Antler dominated seed investments; Peak XV Partners, Vertex Ventures and Accel led early-stage funding; while Premji Invest, Sofina and SoftBank Vision Fund topped late-stage rounds.