Indian technology startups raised a total of $4.88 billion funding in the first half of 2025, marking a 25% decline compared to the same period last year. In H1 2024, Indian startups had secured $6.4 billion, according to a new report by data intelligence firm Tracxn.
The drop also reflects a 19% decrease from the $5.9 billion raised in the second half of 2024. Despite the downturn, India retains its third-place position globally for tech startup funding, trailing only the United States and the United Kingdom, but ranking ahead of Germany and Israel.
Indian Startups Funding
The number of mega funding rounds has also gone down. In H1 2025, India saw just five funding rounds above $100 million. This is a sharp contrast to the ten large rounds in H1 2024 and nine in H2 2024.
Some of the standout deals this year include Erisha E Mobility, which raised $1 billion in a Series D round, GreenLine’s $275 million Series A, and Infra.Market’s $222 million in Series F funding. These high-value rounds offered some bright spots in an otherwise cautious investment climate.
City Funding Leaders
When it comes to location, Bengaluru continues to lead the pack, securing 26% of the total funds raised in India during the first half of 2025. Close behind was Delhi, which attracted 25% of the capital, showing strong competition between the two startup hubs.
This regional trend reinforces Bengaluru’s ongoing reputation as the tech capital of India, with Delhi also making significant strides as a startup-friendly city.
Active Investors Remain Steady
Despite the slowdown in funding, some investors remained active. According to Tracxn, the top backers in H1 2025 were LetsVenture, AngelList, and Accel. Their continued participation shows long-term confidence in India’s startup potential, even during challenging financial periods.
While the first half of 2025 reflects a tough environment for fundraising, the Indian startup ecosystem continues to stay globally relevant and competitive, with strong regional hubs and committed investors powering the next wave of innovation.
