India becomes world's 3rd largest tech startup ecosystem with $7.7 bn of funding in 2025: Report

New Delhi, Sep 25 (IANS) India climbed to third position globally in terms of funding for tech startups, trailing only the United States and the United Kingdom but ahead of Germany and France, a report said on Thursday.

Funding for Indian technology startups declined 23 per cent year-on-year to $7.7 billion in the first nine months of 2025, a report from market intelligence platform Tracxn said.

This sector received $10.1 billion worth of funds in the corresponding period in 2024 and $8.3 billion in 2023.

“India climbing to the third rank globally reflects the resilience and adaptability of our startup ecosystem. What we are witnessing is a clear shift toward maturity, with rising acquisitions, steady IPO activity, and continued unicorn creation providing balanced exit pathways for founders and investors," said Neha Singh, Co-Founder of Tracxn.

Sectors such as enterprise applications, retail, and transportation and logistics technologies are driving long-term investor confidence and fuelling India’s digital transformation, she added.

Seed-stage funding witnessed a total of $727 million, a 39 per cent dip from the previous year. Early-stage funding touched $2.7 billion, marking a 10 per cent decline, while late-stage funding dropped 27 per cent to $4.3 billion, the report said.

The count of rounds exceeding $100 million decreased to 10 from 16 last year and 15 in 2023, while the median round size doubled to $1.5 million.

Enterprise applications topped sectoral funding with $2.3 billion, followed by retail at $2 billion and transportation and logistics technology at $1.79 billion, it noted.

In terms of exits, 110 acquisitions took place during 2025, a 15 per cent increase over 96 from the corresponding period in the previous year. Enterprise applications continued to lead acquisition activity, driven by demand for cloud and AI solutions.

India added four unicorns in 2025, raising the total to 122, the report noted. Bengaluru-based startups continued to dominate, accounting for 31 per cent of total funding, followed by Delhi at 18 per cent.

--IANS

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