India Ranks 3rd Globally in Tech Startup Funding in H1 2025

India ranked as the third largest nation for Tech Startup funding in the world for the first half of 2025. Although there has been a slowdown in venture capital investment in recent years, Indian startups raised $4.8 billion, ranking them ahead of Germany and Israel for the first half of the year.

Although there was a 25% decline in funding year-on-year, and a 19% drop compared to the second half of 2024; however, Indian startup ecosystem continues to be resilient. Important contributing sectors were transportation and logistics tech (104% increase in funding from $0.8 billion to $1.6 billion), wholesale retail technology ($1.2 billion), and enterprise software solutions ($1.1 billion).

Investor activity included large deals including Erisha E Mobility ($1 billion), GreenLine ($275 million), and Infra.Market ($222 million). Bengaluru was the number one dealmaker, while Delhi NCR was a close second. Both accounted for more than half of total funding in India.

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Merger and acquisition activity was up, reaching 73, with headline transactions including Magma General Insurance ($516 million), and Minimalist by HUL ($350 million). SoftBank Vision Fund, Accel, and Venture Catalysts, as well as many other investors, were active participants in India's startup activity. Overall, India's startup funding landscape is strong based on activity from the first half of 2025, particularly given the tough global economic climate.