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India's Tech Startups Raise $9.1B in 2025, AI and DeepTech Lead 23% Growth

Indian tech startups raised $9.1 billion in 2025, marking a 23% increase from the previous year as funding becomes more selective and focused on execution. The report highlights a major shift towards DeepTech, with over 4,200 such startups raising $2.3 billion, driven overwhelmingly by AI. The ecosystem is maturing with a focus on validated business models and commercialization, evidenced by a near-doubling of technology M&A deals. Experts state that AI is now core infrastructure, positioning India for global competitiveness if it can successfully scale innovation.

Key Points: Indian Startups Raise $9.1B in 2025, AI Drives Funding Surge

  • $9.1B total funding in 2025
  • 23% year-on-year growth
  • DeepTech funding up 37% to $2.3B
  • AI accounts for 91% of DeepTech funding
  • Over 140 tech M&A deals in 2025
2 min read

India's tech startups raise funds worth $9.1 billion in 2025, up 23 pc

Indian tech startups secured $9.1 billion in 2025, a 23% YoY increase, with AI and DeepTech ventures attracting the majority of selective, milestone-linked funding.

"India's start-up ecosystem is entering a more disciplined phase of growth, and AI is clearly at the centre of this transition. - Rajesh Nambiar, Nasscom"

New Delhi, Feb 25

Indian tech startups raised $9.1 billion in 2025, up 23 per cent year-on-year, with funding becoming more selective and milestone-linked, a report said on Wednesday.

India's technology startup ecosystem is moving from volume-driven expansion to execution-led maturity, as capital was concentrated in scalable, commercialisation-ready ventures, the report from Nasscom and Zinnov said.

It noted that 74 per cent of deal activity was at seed and early stages, underscoring the strength of India's innovation pipeline.

"DeepTech continued to emerge as a defining pillar of India's innovation trajectory. India now hosts over 4,200 DeepTech start-ups, including more than 550 founded in 2025, reflecting continued momentum in advanced technology development," the report said.

DeepTech ventures raised $2.3 billion in 2025, up 37 per cent YoY, with AI accounting for 84 per cent of start-ups and 91 per cent of funding, the report further said.

AI was increasingly embedded across multiple industry verticals and enterprise applications.

"India's start-up ecosystem is entering a more disciplined phase of growth, and AI is clearly at the centre of this transition, emerging as core infrastructure for India's next innovation cycle," said Rajesh Nambiar, President, Nasscom.

In line with global investment patterns, venture capital in India is now prioritizing validated business models, clear pathways to monetization, and demonstrated execution capability, the report noted.

The ecosystem recorded over 140 technology M&A deals in 2025, nearly double that of 2024, with corporates accounting for approximately 36 per cent of total activity.

The report highlighted the change as the rise of capability-led acquisitions as enterprises look to build rather than outsource innovation. Start-up patent filings rose approximately 68 per cent since 2020-21.

"If India can systematically transform prototypes into paying customers, it will not only remain one of the world's largest start-up hubs - it will become one of the most globally competitive," said Pari Natarajan, CEO, Zinnov.

- IANS

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Reader Comments

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Priya S
Great to see funding becoming more selective and milestone-linked. The era of easy money for any idea is over. Now only the serious, execution-focused startups with clear revenue models will survive. This maturity is good for the long-term health of the ecosystem.
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Rohit P
While the numbers look good, I hope this funding is creating jobs across India and not just in Bangalore/Hyderabad. Also, the report talks about "paying customers" – are these customers mostly Indian businesses, or are we truly building for the global market? That's the real test.
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Sarah B
The stat about 74% of deals at seed/early stage is crucial. It means the pipeline of new ideas is still very strong. The challenge, as Pari Natarajan said, is converting those prototypes into sustainable businesses. Execution is everything now.
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Karthik V
AI accounting for 91% of DeepTech funding! Wow. It's becoming the new electricity for startups. The key will be applying it to solve India-specific problems in agriculture, healthcare, and logistics, not just chasing the same generative AI trends as the West.
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Nisha Z
A respectful note of caution: We must ensure this "disciplined phase" doesn't stifle truly disruptive, moonshot ideas that don't have an immediate monetization path. Sometimes the biggest innovations take time. Hope VCs keep some appetite for risk alongside validation. 🤞

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