Fintech, enterprise applications funding dips in 2025
18 Dec 2025, 09:54 PMOverall, India’s tech startups raised $10.5 billion in 2025, marking a 17% decline from $12.7 billion in 2024.
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Fintech, enterprise applications and retail emerged as the top-performing sectors in 2025 in India, but funding across these sectors dropped compared to last year.
The fintech space attracted $2.2 billion this year, registering a 5% decline in 2024, according to Tracxn's India Tech Annual Funding report.
Enterprise Applications received $2.6 billion in funding in 2025, down 17% from $3.2 billion last year; and retail secured $2.4 billion in funding, marking a 17% drop from $2.9 billion in 2024.
Overall, India’s tech startups raised $10.5 billion in 2025, registering a 17% decline from $12.7 billion in 2024, as late-stage funding significantly dropped.
Late-stage investments fell 26% to $5.5 billion this year from $7.5 billion last year.
Funding at the seed level also dropped 30% to $1.1 billion in 2025 from $1.5 billion last year. Early-stage funding, however, increased 7% to $3.9 billion this year from $3.7 billion in 2024.
Notably, despite the slowdown in funding, India continued to rank as the third-highest funded tech ecosystem globally, behind only the US and the UK, and ahead of China and Germany.
The country saw 14 funding rounds of over $100 million in 2025 compared to 19 such rounds last year and 16 in 2023.
Major big deals of the year included Erisha E Mobility’s $1 billion Series D funding round, Zepto’s $300 million Series H investment round, and GreenLine’s $275 million Series A funding.
The report also noted that women co-founded tech startups in India attracted $1 billion in funding in 2025 with notable rounds such as GIVA’s $62 million Series C funding and AMNEX’s $52 million Series A funding.
India's tech startups recorded 42 initial public offerings (IPOs) in 2025, up 17% from 36 IPOs in 2024, paving the way for exits for early investors.
"The growth in exits and continued investor interest across core sectors such as enterprise applications, retail, and fintech reinforce India’s position as one of the world’s most resilient and attractive startup markets," said Neha Singh, co-founder of Tracxn, which had also scaled up with venture capital funding before it went public in 2022.
The industry saw 136 acquisitions, marking a 7% increase compared to 127 acquisitions in 2024, though an 11% decline from 153 acquisitions in 2023.
The biggest deal was Resulticks’ $2 billion acquisition by Diginex, making it the highest-valued acquisition of the year. This was followed by Magma General Insurance’s acquisition by DS Group and Patanjali Ayurved for $516 million.
A total of five unicorns were created in 2025, similar in number to 2024, and compared to two in 2023.
Bengaluru maintained its top position as the startup hub of the country as it accounted for 32% of total funding, followed by Mumbai with 18% of total funding.
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