INDIA’S STARTUP REPORT CARD 2025

NEWS  – India’s startup ecosystem raised $10.79 billion in 2025, marking a 15% decline from 2024, even as DeepTech, EnergyTech and AI-led manufacturing emerged as key growth drivers, according to data shared by market intelligence platform Tracxn.

HIGHLIGHTS

Overall Funding Trends

• Total funding in 2025: $10.79 billion
• Comparison:
  • 2024: $12.65 billion
  • 2023: $10.98 billion
  • 2022 (peak): $24.35 billion
  • 2021 (Covid boom): $38.93 billion
• Indicates a structural correction rather than a collapse.

Winning Sectors in 2025

• Manufacturing & DeepTech
  • Electronics, semiconductors, factory hardware.
  • India positioned as a manufacturing alternative to China.
• Artificial Intelligence (AI)
  • Shift from consumer apps to AI infrastructure, factory and warehouse automation.
• EnergyTech & EVs
  • EV startups raised $1.50 billion.
• Financial Technology (FinTech)
  • Raised $2.21 billion across 238 rounds.
  • Benefited from interest rate cuts and credit expansion.

Stage-wise Funding Pattern

• Seed-stage: $1.1 billion
  • 30% decline from 2024 → higher risk aversion.
• Early-stage: $3.9 billion
  • Moderate growth, signalling selective optimism.
• Late-stage: $5.5 billion
  • 26% decline → focus on profitability and quicker exits.

IPO & Investor Behaviour

• 42 tech IPOs in 2025
  • Up 17% from 2024.
• Shift from unicorn obsession to IPO-led value realisation.
• Angel investing gaining traction due to successful exits.

Consumer Tech & Workforce Opportunities

• Rise of Consumer AI: personalised tools, AI co-pilots, workflow automation.
• Growth in new-age Indian brands (fashion, home, wellness).
• Emerging focus on blue- and grey-collar workforce platforms, enabling global employment access.

Unicorn Landscape

• India hosts 124 unicorns (~6% of global total).
• Only 5 new unicorns in 2025 → maturity phase.
• Bengaluru leads with 52 unicorns, followed by Gurugram and Mumbai.
• Unicorns highly concentrated in top three cities (>70%).