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India startup funding falls 25% in H1 2025, ranks 3rd globally: Tracxn
Despite the dip, India moved up from fourth to third place globally in startup funding, overtaking Germany and Israel. The United States and United Kingdom retained the top two spots.
Neha Singh, co-founder of Tracxn, said, 'While the funding volumes have come down compared to the previous year, India's tech ecosystem continues to show resilience and maturity. Strong interest in sectors like transportation, retail, and enterprise tech signals investor conviction in solving large, structural challenges. We are also seeing quality IPOs and landmark acquisitions, which reflect the ecosystem's ability to create long-term value.'
Funding by stage
Funding dropped across all stages of investment. Seed-stage startups raised $452 million, down 23 per cent from H2 2024 and 44 per cent lower than the $802 million raised in H1 2024. Early-stage investments totalled $1.6 billion, a 6 per cent decline from H2 2024 and 16 per cent lower year-on-year. Late-stage funding stood at $2.7 billion, reflecting a 25 per cent sequential decline and 27 per cent drop from H1 2024.
Five Indian startups secured funding rounds of over $100 million in H1 2025, a decline from nine such deals in H2 2024 and 10 in H1 2024. The largest among them was Erisha E Mobility, which raised $1.0 billion in a Series D round. GreenLine followed with a $275 million Series A round, while Infra.Market secured $222 million in its Series F funding. Spinny and Darwinbox also featured among those raising significant capital.
These mega-rounds were concentrated in transportation and logistics tech, retail, and real estate and construction tech sectors.
Sectoral performance
Transportation and Logistics Tech was the top-performing sector in H1 2025, attracting $1.6 billion — a 104 per cent rise from H2 2024 and a 54 per cent increase from H1 2024. Retail followed with $1.2 billion, down 32 per cent from H1 2024 but up 25 per cent from H2 2024. Enterprise Applications garnered $1.1 billion, falling 21 per cent from H2 2024 and 26 per cent year-on-year.
IPOs and unicorns
As many as 12 startups went public in H1 2025, compared to 21 during the same period last year. Notable market debuts included Ather Energy, Tankup, SS Innovations International, and Infonative Solutions. Two unicorns emerged in H1 2025, a slight decline from three in H1 2024.
Acquisition activity picked up significantly in H1 2025, with 73 deals recorded — a 35 per cent increase from the 54 acquisitions reported in H1 2024. Among the key transactions, Magma General Insurance was acquired by DS Group and Patanjali Ayurved for $516 million, while Minimalist was taken over by Hindustan Unilever Limited for $350 million.
Leading cities and investors
Bengaluru retained its position as the top city for startup funding, accounting for 26 per cent of the total raised, followed closely by Delhi at 25 per cent.
Top investors overall were LetsVenture, AngelList, and Accel. In seed-stage funding, Venture Catalysts, 100X.VC, and Antler were most active. Among venture capital firms, Accel (US) made the most investments (30 rounds), while Blume Ventures (India) added seven new startups to its portfolio.
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