Indian startups funding trends have shown that in 2025, a total of $13 billion was raised, a decrease of around 10% compared to the $14.4 billion achieved in 2024. The decline was attributed to a reduced number of large funding rounds in comparison to the previous year, which affected overall capital flow. However, this figure surpassed the $11.3 billion recorded in 2023, a particularly challenging period for the ecosystem. The year did witness improved results in select metrics, such as an increase in startup IPOs and fewer layoffs, despite startup closures reaching a three-year peak. Data from various sources indicated that Indian startups secured $13 billion over 1,250 deals in 2025, with growth and late-stage funding accounting for $9.86 billion from 286 deals, while early-stage funding added $3.2 billion through 831 deals. Moreover, 133 funding rounds remained undisclosed.
M-o-M Trend
In 2025, the funding of Indian startups demonstrated an inconsistent pattern, beginning strongly with $1.76 billion in January. However, it fell below $1 billion in seven months throughout the year. A recovery was seen in September, rising to $1.22 billion, reaching another peak in October at $1.73 billion, supported by increased deal activity. The year concluded with $870 million in December, marking a softer close following brief rebounds in the latter half.
Top 10 Growth-Stage Deals in 2025
Major growth-stage funding rounds in 2025 were primarily seen across consumer, enterprise, and tech-focused sectors. Zepto topped the list by raising $450 million, followed closely by Impetus Technologies at $350 million and Innovaccer with $275 million, showcasing a sustained investor interest in AI-driven platforms. Additionally, Uniphore and Zolve raised $260 million and $251 million, respectively, while logistics company Porter secured $200 million. The healthtech sector remained active as PharmEasy raised $193 million and SaaS company MoEngage completed a $180 million round. Fintech firm Weaver Services raised $170 million, while edtech leader Eruditus made the top ten with a $150 million debt round.
Top 10 Early-Stage Deals in 2025
Early-stage funding in 2025 was heavily focused on healthtech and AI-driven startups. The leader was PB Healthcare, which secured $218 million, followed by the consumer-focused jewellery brand QWEEN at $110 million, reflecting ongoing investor confidence in scalable healthcare and digital commerce models. AI startups like Giga, Composio, and Mem0 collectively raised over $110 million, while deeptech innovator QpiAI attracted considerable attention. Fintech and SaaS funding remained cautious, with Saarthi Finance and Atomicwork achieving mid-sized raises, showcasing a targeted yet careful approach to early-stage capital during the year.
Mergers and Acquisitions
Mergers and acquisition activity in 2025 was driven by consumer, SaaS, and logistics-oriented transactions. The largest deal of the year was HUL’s $350 million acquisition of Minimalist, followed by Everstone’s $200 million acquisition of Wingify and Delhivery’s $166 million purchase of Ecom Express. The gaming and edtech sectors were also included in significant transactions, with Head Digital Works and TAL Education completing mid-sized deals. The fintech sector saw ongoing consolidation through transactions involving InCred Money, Razorpay, Nazara, and Findi.
ESOP Buyback/Liquidity/Payout
In 2025, ESOP buyback activities were selective, with Flipkart leading with a $50 million payout, while most other firms undertook smaller programmes under $10 million. Companies like Darwinbox, Dhan, Dezerv, and InsuranceDekho engaged in targeted buybacks, reflecting limited liquidity opportunities for employees largely centralised among established startups. In contrast, total ESOP buybacks, payouts, and liquidity in 2024 amounted to about $190 million, significantly less than the $802 million in 2023, $440 million in 2021, and $200 million in 2022. Notably, the 2025 figure does not incorporate IPO-driven liquidity.
City and Segment-Wise Deals
In 2025, Bengaluru maintained its position at the forefront, facilitating 477 deals and raising $6.03 billion, thus elevating its funding share to 46.14% from 35.08% the previous year. Delhi-NCR followed in second place with 301 deals and $2.57 billion, while Mumbai recorded 182 deals worth $2.26 billion. Among other notable hubs, Pune had 51 deals totalling $409.43 million, with Chennai closing the list with 53 deals valued at $281.91 million. Cities like Hyderabad, Indore, and Ahmedabad also showcased strong performances during the year.
Fintech emerged as the leading sector by funding in 2025, amassing $2.89 billion across 154 deals, accounting for 22.08% of total capital deployed. Following closely was e-commerce with 176 deals amounting to $1.88 billion. AI secured $1.31 billion over 113 deals, and healthtech wrapped up 100 deals worth $1.27 billion. Conversely, foodtech experienced lower capital inflows, raising $386.15 million across 73 deals, as investor interest in the segment remained selective.
Series Wise Deals
In 2025, early-stage activity dominated the deal volume, with pre-seed and seed rounds together accounting for 552 deals, yet the capital raised at these stages was limited. Seed rounds alone closed 409 deals, attracting $994 million. Series A funding saw a boost with 219 deals and $1.97 billion in raised capital, while Series B led by value with $2.37 billion across 99 deals. Debt funding also played a significant role, raising $984.36 million through 52 transactions.
Layoffs, Shutdowns and Departures
In 2025, layoffs occurred predominantly in consumer internet, gaming, and AI-driven startups as companies aimed for cost efficiency amid uneven revenue growth. Substantial workforce reductions were noted at Ola Electric, Zomato, Head Digital Works, VerSe, Zepto, and Junglee Games, affecting hundreds of employees. In total, around 3,700 employees were laid off across 24 companies during the year. This compared unfavourably with about 4,700 layoffs in 2024, 24,000 in 2023, and 20,000 in 2022.
Shutdowns in 2025 involved several notable names across consumer and mobility sectors. The mobility venture BluSmart ceased operations in April, while Dunzo, previously a major quick commerce player, folded in January. Various consumer and content-driven ventures also shut down, including The Good Glamm Group in e-commerce and Hike in social messaging. In the agritech sector, Otipy ceased operations after struggling to maintain growth. Overall, 28 startups shut down in 2025, a marked increase from 17 in 2024 and 15 in 2023.
Comparison H1 Vs H2
In 2025, Indian startups collected $6.72 billion in the first half and $6.34 billion in the second half, over 626 and 624 deals, respectively. The number of funding rounds exceeding $100 million decreased from 12 in the first half to 10 in the second half. M&A activity saw a substantial drop from 85 transactions in the first half to 47 in the latter half, with layoffs rising from over 1,000 employees across eight startups in the first half to over 2,800 employees across 14 startups in the second half.
Trends in 2025
A surge in startup IPOs was observed as the number of tech startup IPOs jumped from 13 in 2024 to 28 in 2025, signalling a significant acceleration in public market activities among new-age companies in India. During this period, consumer internet, fintech, SaaS, and EV startups collectively raised around Rs 41,000 crore through public offerings. Notable IPOs by Urban Company, Meesho, Groww, Lenskart, and Ather Energy created substantial liquidity and exit opportunities for early-stage investors.
A drop in ESOP buybacks and liquidity programmes was noted, showing a sustained decline in employee liquidity across startups since 2021.
Growth in wealthtech funding momentum became evident as India’s wealthtech startup ecosystem gained strong consumer and investor attention since 2024, accumulating over $630 million in the last couple of years. Funding reached $369.34 million in 2025, led by firms like Neo, Smallcase, Dezerv, and Syfe, which accounted for a significant portion of the capital raised.
The Reserve Bank of India expedited regulatory approvals for fintech companies, issuing various payment-related licences to a wider range of firms. In 2025, many players obtained full-stack authorisation across categories, with around six firms, including Paytm, Razorpay, Easebuzz, PayU, Pine Labs, and Airpay, receiving approval for online, offline, and cross-border payment aggregation.