Indian Startups Securing $7 Billion in Venture Capital in 2025

Indian startups have secured a stable venture capital inflow of nearly $7 billion during the first half of 2025. Several deals exceeding $100 million, including four surpassing the $200 million threshold, have facilitated this funding. The funding in 2025 continues to closely follow the trends observed in the previous year. Additionally, stricter regulations on layoffs, an increase in IPO filings, and the introduction of substantial funds have contributed to the overall stability of the ecosystem.

Funding Overview

Data gathered from various sources indicates that Indian startups raised approximately $6.72 billion during the initial half of 2025. This capital encompassed 148 growth and late-stage deals accumulating $5.15 billion, alongside 404 early-stage deals worth $1.57 billion. There were also 74 undisclosed deals noted during this timeframe.

During this period, five startups—Jumbotail, Drools, Porter, Netradyne, and Juspay—achieved unicorn status, with all of them headquartered in Bengaluru.

A recent report by Tracxn named India the third-largest destination for startup funding worldwide, following the United States and the United Kingdom. Interestingly, the report did not include China, which raised $6.9 billion in the first quarter of 2025 alone.

Year-on-Year and Month-on-Month Trends

The funding for the first half of 2025 closely aligns with the funding collected during the same period in 2024, where around $7 billion was secured over six months. Although the funding in the last six months outperformed the H1 2023 figures, it significantly lags behind the $20 billion raised in H1 2022 and the $13 billion in H1 2021. On a month-to-month basis, June recorded funding of just under $1 billion, falling short of May’s $1.14 billion. Notably, this marks the third instance where monthly funding dipped below the $1 billion mark in the first half of 2025.

Top Growth Stage Deals in H1

The first half of 2025 experienced a surge in late-stage funding activity, with ten startups securing over $100 million each. Leading the list was AI-oriented Impetus Technologies with $350 million, followed by healthtech company Innovaccer at $275 million, and cross-border fintech Zolve at $251 million. Other notable mentions included logistics firm Porter, HR tech startup Darwinbox, and used-car platform Spinny, in addition to Infra.Market, Jumbotail, Raphe mPhibr, and Leap Finance. Raphe mPhibr, based in Noida, garnered $100 million in the largest private funding round ever raised by an Indian aerospace company.

Top Early Stage Deals in H1

PB Healthcare emerged with a remarkable $218 million seed round, the highest in this category. Fintech firm Saarthi Finance followed with $55.5 million raised in its Series A round, while SaaS startup Atomicwork secured $25 million. The roster also included EKA Mobility ($23.3 million), Sanlayan ($22 million), and Lucidity ($21 million).

Mergers and Acquisitions

The first half of 2025 featured a blend of strategic and consolidation-driven acquisitions within the Indian startup scene. Consumer goods leader HUL topped the charts with a $350 million acquisition of the D2C skincare brand Minimalist. Everstone then followed with a $200 million buyout of SaaS company Wingify, while Delhivery expanded its logistics footprint by acquiring Ecom Express for $166 million. Additional noteworthy deals included TAL Education acquiring edtech firm Epic for $95 million and Head Digital Works purchasing Deltatech Gaming for $56.6 million. The fintech sector remained vibrant, with Razorpay, InCred Money, and Findi pursuing targeted acquisitions to enhance their capabilities.

City and Segment-Wise Deals

Bengaluru led the startup funding arena in H1 2025 with $2.93 billion spread across 218 deals, reflecting over 43% of the total. Delhi NCR followed, amassing $1.62 billion from 166 deals, while Mumbai achieved $880 million through 99 deals. Chennai and Pune experienced moderate activity, raising $136 million and $180 million, respectively. Collectively, these five cities accounted for the bulk of venture funding during the period.

Fintech dominated the funding landscape in H1 2025, attracting $1.58 billion from 83 deals, followed by healthtech and e-commerce sectors, which raised $828 million and $684 million, respectively. AI and foodtech also retained steady interest, generating $523 million and $237 million, respectively.

Stage-Wise Deals

In the first half of 2025, Series B rounds led the funding charts with $1.35 billion, followed by Series D and Series A rounds, which brought in $1.01 billion and $960 million, respectively. The seed stage remained the busiest with over 200 deals, while Series C secured $788 million. Early-stage rounds such as pre-seed and pre-Series A witnessed limited engagement, and debt funding contributed $413 million. For further details, checking various sources is advised.

Layoffs, Shutdowns, and Departures

Indian startups faced a wave of layoffs in H1 2025, with companies like VerSe, Gupshup, and Zypp Electric making the most substantial cuts. This trend signifies a growing caution amid funding challenges, pushing towards leaner operations. However, total layoffs were around 1,000 in H1, excluding public companies like Zomato and Ola Electric, which laid off 600 and 1,000 employees, respectively. In contrast, Indian startups had laid off 3,300 individuals in H1 2024, highlighting a significant decrease in large-scale job reductions observed in prior years.

Comparison: Q1 vs Q2

To provide a clearer understanding of how startup funding and sectoral trends have progressed throughout the year, a Q1 vs Q2 comparison chart has been compiled to highlight essential shifts across both quarters.

Trends in H1 2025

A surge of IPOs and confidential filings was observed, with several Indian startups—including Shadowfax, Physics Wallah, boAt, Urban Company, Shiprocket, Groww, Pine Labs, Capillary Tech, Wakefit, Indiqube, and Curefoods—submitting their draft red herring prospectuses (DRHPs) and preparing for stock market debuts in the coming months. Notably, Shadowfax, boAt, Shiprocket, Groww, Aequs, and Physics Wallah opted for confidential routes for their IPOs.

Vertical consolidation through M&A deals such as Razorpay acquiring POP, InCred Money acquiring Stocko, and Findi acquiring BANKIT showcases startups emphasizing vertical integration and specialization to elevate their offerings.

Additionally, startup funding in India is anticipated to remain resilient in 2025, backed by significant venture capital funds launched in the first half of the year. A91 Partners ($665M), Accel ($650M), L Catterton ($600M), Multiples Asset Management ($430M), and Bessemer Venture Partners ($350M) were among the prominent fundraisers. These developments reveal a solid capital foundation and increasing investor readiness to support promising startups in upcoming months.

Healthcare and AI sectors witnessed robust funding in H1 2025, consistently remaining in the top five sectors, similar to 2024. Healthtech attracted $828 million, while AI secured $523 million, indicating sustained investor confidence in both domains.