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Key Points

India has climbed to third place in global tech startup funding, raising $4.8 billion in the first half of 2025. Bengaluru and Delhi dominated investments, accounting for over half of the total funding. Key sectors like transportation and retail saw significant growth, with five funding rounds exceeding $100 million. Despite a slowdown, the ecosystem remains resilient with rising acquisitions and quality IPOs.

Key Points: India Ranks 3rd in Global Tech Startup Funding Behind US and UK

  • India overtakes Germany and Israel in startup funding
  • Bengaluru leads with 26% of total investments
  • Transport and retail sectors see major funding spikes
  • 12 startups went public despite funding slowdown
2 min read

India jumps to 3rd place in global tech startup funding in 1st half of 2025

India secures $4.8B in tech startup funding in H1 2025, led by Bengaluru and Delhi, with strong growth in transport and retail sectors.

"“India’s tech ecosystem continues to show resilience and maturity.” – Neha Singh, Tracxn Co-Founder"

Bengaluru, June 25

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.

—IANS

- IANS

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Reader Comments

R
Rahul K.
This is fantastic news! 🇮🇳 Bengaluru and Delhi leading the charge shows how our tech ecosystem is maturing. The focus on transportation and logistics is especially encouraging - solving real Indian problems with innovation. Hope this momentum continues!
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Priya M.
While the ranking is impressive, we shouldn't ignore the year-on-year slowdown. The government needs to create more favorable policies for startups beyond just Bengaluru and Delhi. Tier 2 cities have huge potential too!
A
Arjun S.
The $1 billion funding for Erisha E Mobility shows electric vehicles are the future! 🚗⚡ India is finally catching up in sustainable tech. More such investments will help reduce our oil imports and pollution levels.
S
Shweta R.
Interesting to see retail sector getting $1.2B funding. With our huge consumer base and digital adoption, Indian retail startups can become global players. But hope they focus on profitability too, not just growth at any cost.
V
Vikram J.
The rise in acquisitions (73 vs 54) shows consolidation is happening - a sign of a maturing market. But we need more homegrown VC firms like Blume Ventures to compete with foreign investors. "Make in India" should apply to funding too!
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Neha P.
As someone working in a startup, the funding winter has been tough. This report gives hope! Though fewer IPOs this year (12 vs 21) suggests investors are being more cautious. Quality over quantity is good in long run 👍

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