India jumped to the third position in the world in the funding of tech startups in the first half of 2025, raising $4.8 billion in capital, as per a new report published on Wednesday.
Even with a decline in funding from last year, India has gone past nations such as Germany and Israel, but the United States and United Kingdom remain ahead of it in terms of overall tech startup investments, the report by market intelligence company Tracxn found.
"Although the funding amounts have declined from last year, India's tech ecosystem remains resilient and mature. Strong demand in areas of transportation, retail, and enterprise technology indicates investor belief in addressing big, structural issues," added Neha Singh, Co-Founder of Tracxn.
Bengaluru consolidated its position as India's startup capital with 26% of the country's overall funding, followed closely by Delhi at 25%.
Singh also added, "We are witnessing quality IPOs and milestone acquisitions, demonstrating the ecosystem's capacity to drive long-term value creation."
Five mammoth funding rounds worth over $100 million in the first half of 2025 were highlighted by Erisha E Mobility's Series D funding of $1 billion, GreenLine's $275 million Series A round, and Infra.Market's $222 million Series F investment.
Other prominent fundraisers were Spinny and Darwinbox. A large proportion of the $100M+ investments originated in industries such as Transportation and Logistics Tech, Retail, and Real Estate & Construction Tech, as spotted in the report.
The Transportation and Logistics Tech category spearheaded the revival, as investments hit $1.6 billion—a strong 104% increase from the $799.3 million raised during the second half of 2024.
Retail startups also gained traction, collecting $1.2 billion in funding, while the Enterprise Applications space drew in $1.1 billion.
In terms of public listings, 12 startups launched IPOs in H1 2025, down from 21 in the same period last year. However, M&A activity intensified, with 73 acquisitions recorded, up from 54 in H1 2024.
Among the investors, the US-based Accel led the pack with 30 rounds of funding, and India's Blume Ventures showed significant growth with seven new startups added to its portfolio.
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