Latest news with #IndiaTechSemi-AnnualFundingReport
New Indian Express
11 hours ago
- Business
- New Indian Express
Start-up funding declines 25% in first half of 2025
The start-up funding landscape across different stages continues to show a downward trend as start-ups raised only $4.8 billion, a 25% year-on-year (YoY) decline in the first half of 2025 compared to $6.4 billion in January-June 2024. This funding in H1 2025 is about 19% lower compared to July-December 2024 ($5.9 billion). According to market intelligence platform Tracxn's India Tech Semi-Annual Funding Report H1 2025, seed stage funding dropped by 44% to $452 million compared to $802 million in H 1 2024. Early-stage and late-stage funding too declined 16% y-o-y and 27% YoY, respectively. The first half of this year witnessed only five 100 million+ funding rounds when compared to 9 such rounds in H2 2024 and 10 in H1 2024. This slowdown in funding is attributed to various factors including the present macro-economic environment. Neha Singh, co-founder, 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." About 12 start-ups went public in the first half of this year compared to 21 in H1 2024. This includes Ather Energy, Tankup, SS Innovations International and Infonative Solutions. Also, two unicorns emerged in H1 2025, compared to three unicorns in H1 2024. With 26% of the overall funding, Bengaluru emerged as the leader in total funds raised during this period, followed by Delhi at 25%. Interestingly, the report points out that out of the 89 unicorns (out of a total of 119) which disclosed their financials as of March 2024, only 26 unicorns were profitable. FinTech and Retail unicorns such as Zerodha, CoinDCX, OfBusiness, and Oxyzo are leading in profitability. H1 2025 witnessed 73 acquisitions compared to 54 acquisitions in the year-ago period. The most notable acquisition was Magma General Insurance, acquired by DS Group and Patanjali Ayurved for $516 million, followed by Minimalist, acquired by HUL for $350 million. The report also highlights that Bengaluru dominates with $50 billion in unicorn funding, followed by Gurugram with $13.1 billion in funding, primarily in the gig economy sector.
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Business Standard
18 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.
