According to Trax’s latest report, India ranked third globally in tech startup funding in the first half of 2025, raising $4.8 billion. Although down 25% from the previous year, India overtook Germany and Israel to take the lead, behind the US and the UK.

Funding slowed across all stages: seed funding fell 44% to $452 million, early-stage funding fell 16% to $1.6 billion, and late-stage investment fell 27% to $2.7 billion. However, five startups raised more than $100 million – led by Erisha e-Mobility with $1 billion, followed by Greenline, Infra.Market, Spinny and Darwinbox. Transport and logistics was the best-performing sector, growing 104% to $1.6 billion.

Retail and enterprise tech also attracted significant investments. Mergers and acquisitions increased, with 73 deals, including Magma General Insurance’s DS Group and Patanjali Ayurveda registering a sale of $516 million. Bengaluru and Delhi led the way in funding, while top investors included Accel, LetsVenture and Angellist.

Despite the slowdown, India’s tech ecosystem remains strong, with growing interest in solving key challenges across key sectors, experts say.