Bengaluru— India climbed to third place globally in tech startup funding during the first half of 2025, securing $4.8 billion in investments, according to a new report from Tracxn, a leading market intelligence platform.
Despite a year-on-year decline in total funding volume, India surpassed Germany and Israel to claim the third spot, behind only the United States and the United Kingdom.
“While funding volumes have declined compared to last year, India’s tech ecosystem continues to demonstrate resilience and maturity,” said Neha Singh, Co-Founder of Tracxn. “Strong investor interest in sectors like transportation, retail, and enterprise tech reflects a growing focus on solving large, structural challenges.”
Bengaluru led the nation in startup investments, accounting for 26% of total funding, followed closely by Delhi at 25%.
“We’re also seeing promising signs in the form of high-quality IPOs and landmark acquisitions, signaling the ecosystem’s capacity to generate long-term value,” Singh added.
The first half of 2025 saw five mega funding rounds exceeding $100 million. Among the largest were Erisha E Mobility’s $1 billion Series D, GreenLine’s $275 million Series A, and Infra.Market’s $222 million Series F. Other notable fundraisers included Spinny and Darwinbox.
Much of the major funding activity was concentrated in Transportation and Logistics Tech, Retail, and Real Estate and Construction Tech.
Transportation and Logistics Tech in particular experienced a strong rebound, raising $1.6 billion—up 104% from $799.3 million in the second half of 2024. The retail sector followed with $1.2 billion, while enterprise applications attracted $1.1 billion.
India also saw a shift in exit strategies. Twelve startups went public in the first half of 2025, down from 21 during the same period in 2024. However, acquisitions surged, with 73 deals recorded—up from 54 a year earlier.
On the investment side, Accel (US) led the way with 30 funding rounds, while India-based Blume Ventures added seven new companies to its portfolio during the period. (Source: IANS)
