India’s Tech Startups Weather Funding Slowdown, Retain Third Place Globally

Despite a 23% decline in funding compared to 2024, India maintained its position as the world's third-largest startup ecosystem in 2025, raising $77 billion and surpassing major European countries like Germany and France.

The funding slowdown affected all stages, with seed-stage investments dropping by 39% and late-stage funding decreasing by 27% However, the median funding round size doubled, indicating a shift towards investing larger amounts in fewer startups.

High-profile funding rounds included Erisha E Mobility's $1 billion Series D, GreenLine's $275 million Series A, and InfraMarket's $222 million Series F, showcasing continued investor confidence.

Enterprise Applications received the most funding at $23 billion, while Retail and Transportation & Logistics Tech sectors also saw significant investment, highlighting investor interest in scalable business models.

Digital lending startups faced a 21% drop in investments, demonstrating selective capital allocation in riskier areas

The Indian startup ecosystem matured with a 15% increase in exits, totaling 110, and active public market participation with 26 IPOs or secondary offerings, driven mainly by Enterprise Applications and Real Estate & Construction Tech

India saw the emergence of four new unicorns in 2025, bringing the total to 122 Bengaluru remained the top city for startups, hosting 53 unicorns, followed by Gurugram and Mumbai.

Leading investors in India's startup scene included LetsVenture, AngelList, and Accel, with different players dominating various funding stages, from seed to late-stage investments

The ecosystem's strong fundamentals, like larger deal sizes and continued unicorn creation, suggest a shift toward sustainable growth and global competitiveness, cementing India's role as a key player in the global startup landscape