Is India Now the World’s 3rd Largest Tech Startup Ecosystem with $7.7 Billion in Funding for 2025?
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Synopsis
In a remarkable achievement, India has become the third largest tech startup ecosystem in the world, with funding of $7.7 billion in 2025. Discover how this reflects the resilience of India's startup landscape and the sectors driving growth amid challenges.
Key Takeaways
- India is now the third largest tech startup ecosystem globally.
- Funding for tech startups in India reached $7.7 billion in 2025.
- Enterprise applications lead in sectoral funding.
- There was a significant increase in acquisition activity.
- Four new unicorns were added in 2025, totaling 122 in India.
New Delhi, Sep 25 (NationPress) India has secured the third spot globally in terms of funding for tech startups, only behind the United States and the United Kingdom, and ahead of Germany and France, according to a report released on Thursday.
Funding for Indian tech startups saw a 23% decrease year-on-year, amounting to $7.7 billion in the first three quarters of 2025, as reported by market intelligence platform Tracxn.
In comparison, this sector received $10.1 billion in the same period of 2024 and $8.3 billion in 2023.
“India’s achievement of the third rank globally underscores the resilience and adaptability of our startup ecosystem. We are witnessing a definitive transition towards maturity, characterized by increasing acquisitions, stable IPO activity, and ongoing unicorn formation, offering balanced exit options for both founders and investors,” stated Neha Singh, Co-Founder of Tracxn.
Sectors such as enterprise applications, retail, and transportation and logistics technologies are bolstering long-term investor confidence and propelling India’s digital transformation, she added.
Seed-stage funding totaled $727 million, reflecting a 39% decline from the prior year. Early-stage funding reached $2.7 billion, showing a 10% drop, while late-stage funding fell by 27% to $4.3 billion, according to the report.
The number of funding rounds exceeding $100 million decreased to 10 from 16 last year and 15 in 2023, while the median round size increased to $1.5 million.
Enterprise applications led sectoral funding with $2.3 billion, followed by retail at $2 billion and transportation and logistics technology at $1.79 billion.
In terms of exits, 110 acquisitions occurred in 2025, marking a 15% increase over 96 in the same period the previous year. Enterprise applications remained at the forefront of acquisition activity, driven by the demand for cloud and AI solutions.
India welcomed four new unicorns in 2025, raising the total to 122, as noted in the report. Startups based in Bengaluru continued to lead, accounting for 31% of total funding, followed by Delhi at 18%.
Point of View
It is crucial to recognize the significance of India's ascent in the global tech startup ecosystem. This growth not only showcases the country's robust entrepreneurial spirit but also highlights the sectors that are driving innovation and attracting investment. Our commitment is to continue supporting and reporting on these developments with an unbiased lens, ensuring that the voice of the nation remains strong.
NationPress
25/09/2025
Frequently Asked Questions
What position does India hold in global tech startup funding?
India ranks third globally, following the United States and the United Kingdom.
How much funding did Indian tech startups receive in 2025?
Indian tech startups received $7.7 billion in funding during the first nine months of 2025.
Which sectors are driving India's tech startup growth?
Enterprise applications, retail, and transportation and logistics technologies are leading the growth.
How many unicorns did India add in 2025?
India added four new unicorns in 2025, bringing the total to 122.
What was the trend in seed-stage funding in 2025?
Seed-stage funding saw a decline of 39% in 2025, totaling $727 million.
