The seed-stage funding decreased to $452 million, early-stage funding to $1.6 billion, and late-stage funding to $2.7 billion. The number of large-ticket investments also reduced, with only five rounds crossing the $100 million mark.
Among the top fundraisers in H1 2025 were Erisha E Mobility with a $1 billion Series D round, GreenLine with $275 million in Series A, and Infra.Market with a $222 million Series F. Spinny and Darwinbox also secured significant funding, the report highlighted.
These large-ticket investments were largely concentrated in sectors that showed relative resilience amid the broader slowdown, particularly Transportation and Logistics Tech, Retail, and Construction Tech.
As per the report, Transportation and Logistics Tech emerged as the leading sector, raising $1.6 billion—more than double its total in H2 2024 and 54% higher year-on-year. Retail also saw a moderate recovery, attracting $1.2 billion, up 25% from the previous half, though still trailing its H1 2024 figure of $1.8 billion.
In contrast, Enterprise Applications continued to see declining interest, with funding falling to $1.1 billion.
“While the funding volumes have come down compared to the previous year, India’s tech ecosystem continues to show resilience and maturity. Strong interest in sectors like transportation, retail, and enterprise tech signals investor conviction in solving large, structural challenges,” Neha Singh, Co-Founder, Tracxn, said.
“We are also seeing quality IPOs and landmark acquisitions, which reflect the ecosystem’s ability to create long-term value,” she said.
City-wise, Bengaluru and Delhi remained the leading startup hubs, accounting for 26% and 25% of total capital raised, respectively. On the investor front, LetsVenture, AngelList, and Accel were the most active overall. Accel led with 30 deals, while Blume Ventures added seven new companies to its portfolio. Venture Catalysts, 100X.VC, Antler, Peak XV Partners, Sofina, Premji Invest, and SoftBank Vision Fund were also prominent across various stages.
Globally, India held its position as the third-largest tech funding ecosystem, behind only the U.S. and the U.K.
Only about 12 startups went public in H1 2025, down from 21 IPOs in the same period last year. Notable listings included Ather Energy, Tankup, SS Innovations International, and Infonative Solutions. Unicorn creation also slowed, with only two startups reaching the billion-dollar valuation mark, compared to three in H1 2024.
In contrast, 73 M&A deals were recorded in H1 2025, up from 54 a year earlier. Major transactions included the $516 million acquisition of Magma General Insurance by DS Group and Patanjali Ayurved, and Hindustan Unilever’s $350 million acquisition of skincare brand Minimalist.
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