Has India Secured 3rd Place in Global Tech Startup Funding for H1 2025?
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Synopsis
In an impressive showcase of resilience, India climbed to third place in global tech startup funding for H1 2025, raising a remarkable $4.8 billion. This report highlights the country's growing tech ecosystem and commitment to innovation amidst challenges.
Key Takeaways
- India ranks third in global tech startup funding for H1 2025.
- Bengaluru leads in total funding raised.
- Funding in Transportation and Logistics Tech increased significantly.
- Investor interest remains strong in various sectors.
- Number of acquisitions in the startup ecosystem is on the rise.
Bengaluru, June 25 (NationPress) India has ascended to third position in the global tech startup funding landscape for the first half of this year (H1 2025), successfully raising $4.8 billion, as highlighted in a report released on Wednesday.
Despite experiencing a slowdown year-on-year, India managed to secure the third spot globally in tech startup funding, surpassing Germany and Israel, while trailing behind the United States and the United Kingdom, according to insights from Tracxn, a prominent market intelligence platform.
“Even though the funding amounts have decreased compared to last year, India's tech ecosystem demonstrates ongoing resilience and maturity. The strong interest in sectors such as transportation, retail, and enterprise tech indicates investors' confidence in addressing significant structural challenges,” stated Neha Singh, Co-Founder of Tracxn.
Bengaluru emerged as the frontrunner in total funds raised during this timeframe, capturing 26 percent of the overall funding, followed closely by Delhi at 25 percent.
“We are also witnessing notable IPOs and significant acquisitions, which reflect the ecosystem’s capability to generate long-term value,” Singh added.
In H1 2025, there were five funding rounds that exceeded $100 million. Some of the noteworthy 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 obtained substantial funding included Spinny and Darwinbox. A significant portion of these funding rounds of $100 million and above were from the Transportation and Logistics Tech, Retail, and Real Estate and Construction Tech sectors, as indicated in the report.
The Transportation and Logistics Tech sector experienced a robust recovery, raising $1.6 billion, reflecting a 104 percent increase from $799.3 million in H2 2024.
The retail segment also showed positive momentum, securing $1.2 billion in funding. The Enterprise Applications sector garnered $1.1 billion in funding.
In H1 2025, 12 startups went public, a decrease from 21 in H1 2024. The number of acquisitions in the Indian startup ecosystem saw a significant uptick, with 73 acquisitions in H1 2025, compared to 54 in H1 2024.
Among venture capital firms, Accel (US) led with the highest number of investments, participating in 30 investment rounds, while Blume Ventures (India) contributed seven new companies to its portfolio during this period.
Point of View
It is evident that India's tech ecosystem is evolving and adapting to the changing global landscape. The resilience shown in securing third place in startup funding amidst challenges is commendable. The rising interest in diverse sectors indicates a bright future for innovation and investment in India.
NationPress
25/06/2025
Frequently Asked Questions
What factors contributed to India's rise in tech startup funding?
India's rise in tech startup funding can be attributed to strong investor interest in key sectors like transportation, retail, and enterprise tech, reflecting confidence in solving major structural challenges.
How much funding did India raise in H1 2025?
India raised a total of $4.8 billion in tech startup funding during the first half of 2025.
Which city led in funding during this period?
Bengaluru led in total funds raised during this period, accounting for 26 percent of the overall funding.
What sectors are showing growth in India’s startup ecosystem?
The Transportation and Logistics Tech, Retail, and Enterprise Applications sectors are showing significant growth and investor interest.
How many startups went public in H1 2025?
In H1 2025, 12 startups went public, a decrease from 21 in H1 2024.
