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Business Standard
7 hours ago
- Business
- Business Standard
India startup funding falls 25% in H1 2025, ranks 3rd globally: Tracxn
India's tech startup ecosystem raised $4.8 billion in the first half of 2025, according to Tracxn's 'India Tech Semi-Annual Funding Report H1 2025'. This marked a 25 per cent drop from $6.4 billion in H1 2024 and a 19 per cent decline from $5.9 billion in H2 2024. 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 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, 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.


India.com
11 hours ago
- Business
- India.com
India Jumps To 3rd Place In Global Tech Startup Funding In 1st Half Of 2025
Bengaluru: India jumped to third place in global tech startup funding in the first half this year (H1 2025), raising $4.8 billion, a report showed on Wednesday. Despite the year-on-year slowdown, India ranked third globally in tech startup funding, ahead of Germany and Israel and trailing the United States and the United Kingdom, according to Tracxn, a leading market intelligence platform. '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,' said Neha Singh, Co-Founder, Tracxn. Bengaluru emerged as the leader in total funds raised during this period, accounting for 26 per cent of the overall funding, followed by Delhi at 25 per cent. 'We are also seeing quality IPOs and landmark acquisitions, which reflect the ecosystem's ability to create long-term value,' Singh mentioned. H1 2025 witnessed five funding rounds exceeding $100 million. Some of those who raised these large rounds included Erisha E Mobility's $1.0 billion Series D round, GreenLine's $275 million Series A round, and Infra. Market's $222 million Series F round. Other companies that secured major funding included Spinny and Darwinbox. A major part of these $100M and above funding rounds were from Transportation and Logistics Tech, Retail and Real Estate and Construction Tech verticals, the report mentioned. The Transportation and Logistics Tech sector saw a strong recovery, raising $1.6 billion, a 104 per cent increase from $799.3 million in H2 2024. The retail sector also showed signs of an uptick, securing $1.2 billion in funding. The Enterprise Applications sector secured $1.1 billion in funding. There were 12 startups that went public in H1 2025, as compared to 21 in H1 2024. Acquisitions in the Indian startup ecosystem saw a significant rise, with 73 acquisitions in H1 2025, compared to 54 acquisitions in H1 2024. Among venture capital firms, Accel (US) led the most number of investments, with 30 investment rounds, while Blume Ventures (India) added seven new companies to its portfolio during this period.