Tech startups in India raised $10.5 billion (about Rs 94,000 crore) in 2025, a 17% drop from the previous year but the country retained its position as the world’s third-largest funded startup ecosystem after the United States and the United Kingdom, according to Traxon’s India Tech Annual Funding Report 2025.

While overall funding declined from 2024 levels, early-stage startups showed resilience, with funding rising to $3.9 billion despite a decline in seed-stage and late-stage funding. Large deals were few, with sectors such as transportation, environmental tech and auto tech leading 14 rounds above $100 million, including major raises by companies such as Septo.

The report also highlighted strong exit activity, with 42 tech IPOs and five new unicorns created in 2025. Enterprise applications, retail and fintech were the sectors with the most funding, with Bengaluru remaining the top startup hub in India, with investor interest remaining strong despite a more disciplined funding environment.