According to the Tracxn report, India attracted $4.8 billion in investments during this period, showcasing continued strength and sectoral maturity even in a global funding slowdown.
India’s tech startup ecosystem ranked 3rd globally in H1 2025, surpassing Germany and Israel in overall funding despite facing a 25% year-on-year decline. The H1 of 2025 saw Indian startups raise $4.8 billion, down from $6.4 billion in H1 2024 and $5.9 billion in H2 2024.
This placed India behind only the US and the UK in global rankings. Only 2 unicorns emerged in this term versus 3 in the same period last year, reflecting a slower but still resilient funding environment.
Seed-stage funding dropped to $452 million, marking a 23% fall from H2 2024 and 44% lower than H1 2024. Early-stage startups attracted $1.6 billion, down 6% from H2 2024 and 16% from the same time last year. Late-stage deals witnessed a steep 25% decline to $2.7 billion, continuing the downward trend from $3.6 billion in H2 2024 and $3.7 billion in H1 2024.
Despite setbacks, certain sectors demonstrated positive momentum. Transportation and Logistics Tech led with $1.6 billion in funding, a sharp 104% rise from H2 2024. The Retail sector witnessed $1.2 billion, increasing 25% since H2 2024, though still 32% down from H1 2024. Enterprise Applications received $1.1 billion, reflecting a consistent decline over both prior periods.
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H1 2025 saw 5 funding rounds exceeding $100 million, a dip from 9 in H2 2024. Deals included Erisha E Mobility’s $1 billion Series D, GreenLine’s $275 million Series A, and Infra.Market’s $222 million Series F. Other notable recipients included Spinny and Darwinbox, with heavy activity in the Transportation, Retail, and Construction Tech segments.
A total of 12 Indian startups debuted on stock exchanges, down from 21 during H1 2024. Prominent listings included Ather Energy and SS Innovations. Meanwhile, acquisitions jumped to 73 from 54 in the previous year, with DS Group and Patanjali’s $516 million takeover of Magma General Insurance leading the list, followed by HUL’s $350 million acquisition of Minimalist.
Bengaluru and Delhi dominated the funding map, contributing 26% and 25% respectively. LetsVenture, AngelList, and Accel emerged as the top overall investors. Venture Catalysts and 100X.VCs were most active in seed deals, while Peak XV, Accel, and Lightspeed led the early stage. Late-stage funding was driven by firms like Sofina, Premji Invest, and SoftBank Vision Fund.
India’s tech startup space retained its global slot despite slowing capital inflow and fewer unicorns. Sectors like logistics and retail revived confidence, while major IPOs and a surge in acquisitions highlighted market maturity. Investor interest across stages, especially from key cities, points to sustained potential in the ecosystem.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jun 26, 2025, 3:52 PM IST
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