NEW DELHI, India — Indian technology startups raised $9.1 billion in 2025, a 23 percent increase year on year, as investors became more selective and increasingly tied funding to execution milestones, according to a report released on Wednesday.
The Indian startup ecosystem is shifting from volume-driven expansion to an execution-led phase of maturity, with capital flowing toward scalable ventures that are closer to commercialization, the report by Nasscom and Zinnov said.
Despite tighter capital deployment, early-stage innovation remained strong, with 74 percent of all deals occurring at the seed and early stages, underscoring the depth of India’s startup pipeline.
The report highlighted DeepTech as a defining pillar of India’s innovation trajectory. India now hosts more than 4,200 DeepTech startups, including over 550 founded in 2025 alone, reflecting sustained momentum in advanced technology development.
DeepTech ventures raised $2.3 billion during the year, up 37 percent from 2024. Artificial intelligence dominated the segment, accounting for 84 percent of DeepTech startups and 91 percent of the funding raised. AI is increasingly being embedded across multiple industry verticals and enterprise applications, the report noted.
“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 of Nasscom.
In line with global trends, venture capital investors in India are prioritizing validated business models, clear paths to monetization, and demonstrated execution capability, the report said.
The ecosystem also recorded more than 140 technology mergers and acquisitions in 2025, nearly double the number seen in 2024. Corporates accounted for about 36 percent of total M&A activity, reflecting a rise in capability-led acquisitions as companies seek to build innovation internally rather than outsource it.
Start-up patent filings have risen by about 68 percent since 2020–21, highlighting growing emphasis on intellectual property creation.
“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 of Zinnov. (Source: IANS)
