India has emerged as the third largest start-up ecosystem in the world. Startups in India have also raised $2.5 billion (about Rs 20,000 crore) in the first quarter of 2025. India is ahead of the US and the UK in terms of startup growth. This is according to a new report by Tracxn's Jio Quarterly India Tech.

According to the report, Delhi has surpassed Bengaluru in terms of startup funding in India. Bengaluru was previously No. Although it was 1, now Delhi has taken the lead by securing 40% funding. With this, Delhi has become the largest start-up funding centre in India.

"India has become one of the largest ecosystems in terms of startup activity and funding activities," said Neha Singh Mani, co-founder, Truxn.

He said India is now the third largest start-up ecosystem, even if we look at the number of unicorns or late-stage companies, which are worth more than $1 billion.

Trux's latest report indicates that there has been an increase in late-stage funding and a decrease in early-stage investments

AI funding in India is largely focused on applications rather than infrastructure, the report said, adding that the quick commerce sector has grown with the success of Blinkit, Zepto and Swiggy Instamart.