New Delhi: India has emerged as the world’s third-largest hub for tech startup funding in 2025, surpassing Germany and France, though still behind the United States and the United Kingdom, according to a report released on Thursday.
Data from market intelligence firm Tracxn revealed that Indian startups attracted $7.7 billion in funding during the first nine months of 2025.
While the figure represents a 23 per cent drop from $10.1 billion recorded in the same period last year, it continues to demonstrate the country’s strong position in the global startup landscape.
In 2023, startups in India had raised $8.3 billion.
Tracxn co-founder Neha Singh said the country’s steady climb in the rankings underscores the resilience of its ecosystem.
“We are witnessing a maturing market, where consistent IPO activity, strategic acquisitions, and the rise of new unicorns are creating sustainable exit opportunities for entrepreneurs and investors,” she noted.
According to the report, sectors such as enterprise applications, retail, and transportation and logistics technology were key drivers of investor confidence.
Enterprise-focused ventures drew $2.3 billion, followed by retail with $2 billion and logistics at $1.79 billion.
Funding, however, slowed across stages. Seed-stage investments stood at $727 million, down 39 per cent from last year.
Early-stage startups secured $2.7 billion, a 10 per cent dip, while late-stage funding fell 27 per cent to $4.3 billion.
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Deals worth over $100 million declined to 10 this year, compared to 16 in 2024 and 15 in 2023. At the same time, the median funding round size doubled to $1.5 million.
India also recorded 110 acquisitions in 2025, a 15 per cent rise from 96 in the previous year, with enterprise applications leading the trend, boosted by demand for cloud and artificial intelligence solutions.
The report further highlighted that India added four unicorns this year, bringing the total count to 122.
Bengaluru remained the country’s leading startup hub, accounting for nearly one-third of the total funding at 31 per cent, followed by Delhi at 18 per cent.
