Indian start-up funding drops 10% to $13B in 2025
What's the story
Indian start-ups raised a total of $13 billion in 2025, marking a 10% decline from the $14.4 billion raised in 2024. The dip is largely attributed to fewer large funding rounds compared to last year. However, it's worth noting that this year's funding still surpassed the $11.3 billion recorded in 2023, which was considered one of the toughest times for the ecosystem.
Funding patterns
Monthly trends and sector-wise funding
The monthly trend of Indian start-up funding in 2025 was uneven, with a strong start in January at $1.76 billion. However, the amount fell below $1 billion for seven months of the year. The funding picked up again in September at $1.22 billion and peaked again in October at $1.73 billion due to higher deal activity. The year ended on a softer note with $870 million raised in December after brief recoveries during the second half of the year.
Deal highlights
Top deals and sectors in 2025
In 2025, the biggest growth-stage rounds were across consumer, enterprise, and tech-focused categories. Zepto topped the list with a $450 million raise, followed by Impetus Technologies at $350 million and Innovaccer at $275 million. Uniphore and Zolve raised $260 million and $251 million, respectively, while logistics firm Porter secured $200 million. Healthtech remained active with PharmEasy raising $193 million while SaaS company MoEngage closed a round of funding worth $180 million.
Market activity
Early-stage funding and mergers in 2025
Early-stage funding in 2025 was heavily concentrated on healthtech and AI-led start-ups. PB Healthcare topped with a $218 million raise, followed by consumer-focused jewelry brand QWEEN at $110 million. AI start-ups Giga, Composio, and Mem0 together raised over $110 million while deep tech player QpiAI also drew significant interest. M&A activity was led by consumer, SaaS, and logistics-focused transactions with HUL's $350 million acquisition of Minimalist being the largest deal of the year.
Market trends
ESOP buyback and city-wise deals
ESOP buyback activity in 2025 was selective, led by Flipkart's $50 million payout. Bengaluru dominated the market with 477 deals and $6.03 billion in funding, increasing its share to 46.14% from last year's 35.08%. Delhi-NCR came second with 301 deals worth $2.57 billion while Mumbai recorded 182 deals worth $2.26 billion. Fintech emerged as the top sector by funding with $2.89 billion raised across 154 deals making up over a fifth of total capital deployed during the year.
Market dynamics
Early-stage activity and layoffs in 2025
Early-stage activity dominated deal volume in 2025 with pre-seed and seed rounds accounting for 552 deals. However, the capital raised at these stages remained limited. Layoffs were mostly seen in consumer internet gaming and AI-led start-ups as companies focused on cost discipline amid uneven revenue growth. Major workforce reductions were reported Ola Electric, Zomato, Head Digital Works, VerSe, Zepto, and Junglee Games. Overall, 24 companies laid off around 3,800 employees during the year and 28 start-ups shut operations.