India's Tech Startups Rank 3rd Globally: How $10.5B Funding Defies Downturn

The report from market research firm Tracxn said that the achievement is notable despite a 17 per cent decline from $12.7 billion in 2024 and a 4 per cent drop compared to $11 billion raised in 2023.

India ranked behind only the US and the UK, according to the report, as the tech ecosystem recorded 14 funding rounds of over $100 million, compared to 19 rounds in 2024.

Large deals were driven primarily by the Transportation and Logistics Tech, Environment Tech, and Auto Tech sectors, with companies raising notable capital.

Further, India's tech sector saw early‑stage funding rise to $3.9 billion, up 7 per cent year‑on‑year. Late‑stage funding fell to $5.5 billion, after easing 26 per cent from 2024 levels, while seed‑stage funding moderated to $1.1 billion.

"India's tech ecosystem continues to demonstrate strong fundamentals and global relevance. While capital deployment has become more disciplined, the sustained momentum in early-stage funding, rising IPO activity, and steady unicorn creation highlight a maturing ecosystem that is increasingly focused on building scalable, high-quality businesses," said Neha Singh, Co-Founder of Tracxn.

"The growth in exits and continued investor interest across core sectors such as enterprise applications, retail, and fintech reinforce India's position as one of the world's most resilient and attractive startup markets," Singh added.

Women co‑founded startups attracted $1 billion in funding, while retail and enterprise applications emerged as the top-funded sectors, driven by brand-led execution, strong consumer demand, and enterprise adoption. In 2025, five unicorns were created -- up from two in 2023, the report noted.

City-wise, Bengaluru accounted for 32 per cent of total funding, maintaining its position as India's leading startup hub, followed by Mumbai with 18 per cent of total funding.

- IANS