Indian Startups Raise $13 Billion in 2025 Despite Increased Shutdowns
Unique investor participation witnessed an 8% year-on-year increase, reflecting the ecosystem's resilience and adaptability. Despite 28 shutdowns and 3,800 layoffs, investor participation grew by 8%, with 2,072 investors involved. Regional Contributions to Funding Bengaluru continued to be the focal point of startup activity, accounting for 46% of the total deal value.
In 2025, Indian startups secured a total of $13 billion in funding through 1,250 deals, reflecting a complex landscape of growth and challenges. While the funding exceeded the $11.3 billion raised in 2023, it remained significantly lower than the $38 billion peak achieved in 2021. The year saw a notable increase in investor participation, despite a backdrop of increased shutdowns and layoffs.
Regional Contributions to Funding
Bengaluru continued to be the focal point of startup activity, accounting for 46% of the total deal value. The city witnessed $6.03 billion raised across 477 deals. In contrast, the Delhi-NCR region saw 301 deals, amounting to $2.57 billion, and Mumbai recorded 182 deals with a total value of $2.26 billion. These three cities collectively played a crucial role in sustaining the momentum of the Indian startup ecosystem.
Sector-Specific Funding Trends
Fintech emerged as a prominent sector, attracting $2.89 billion across 154 deals. Meanwhile, the e-commerce sector secured $1.88 billion through 176 deals. These figures underscore the continued investor interest in technology-driven industries, even as the overall funding landscape faced challenges. The mergers and acquisitions (M&A) market saw a particular focus on enhancing intellectual property and artificial intelligence capabilities, primarily for capability expansion.
Challenges and Layoffs
The year 2025 also brought its share of difficulties, as 28 startups ceased operations and 24 companies laid off 3,800 employees. Despite these setbacks, the startup ecosystem continued to attract a diverse range of investors, with venture capital firms participating in over half of the deals. Angel investors contributed to more than 20% of the transactions, highlighting the dynamic nature of investment sources.
Investment and Market Dynamics
Investor participation in 2025 grew by 8%, with 2,072 investors engaging in the ecosystem. Of the deals closed, 433 were seed-stage deals raising $793 million, while 144 late-stage deals accounted for $6 billion. The preference for early-stage investments was evident, with 70 out of 90 funds focusing on this stage. Debt financing emerged as a reliable option for late-stage startups, providing an alternative to equity funding.
Additionally, 18 technology companies made their debut on stock exchanges, and several startups are planning to go public within the next 1.5 years. Unique investor participation witnessed an 8% year-on-year increase, reflecting the ecosystem's resilience and adaptability.
Two significant players, Antler India and Marwari Catalysts, contributed notably to the deal-making activity, closing 57 and 40 deals respectively in 2025. This flurry of activity indicates a continued interest in the Indian startup scene, even as the sector navigates a period of mixed trends.