New Delhi: India’s startup ecosystem saw strong growth in early 2025 and raised 2.5 billion dollars in funding and ranked third globally after the US and the UK, according to Tracxn. In a major shift, Delhi overtook Bengaluru in total funding for the quarter, reshaping the country’s startup landscape.
Bengaluru had more startup deals but Delhi led in total funding because of strong IPO exits. Delhi-based tech firms secured 40 per cent of all startup funding in India, while Bengaluru followed with 21.64 per cent.
Neha Singh, Co-Founder of Tracxn, told MoneyControl that “India has become one of the largest ecosystems in terms of startup activity as well as funding activity.” She added that India now ranks third globally in the number of unicorns and late-stage companies valued at over a billion dollars.
Latest report by Tracxn revealed a rise in late-stage funding while early-stage investments declined. The company’s co-founder linked this trend to a strong pipeline of IPO-ready firms, driven by the booming IPO market in 2024.
He explained that many venture-backed companies went public last year. This creates success stories and paves the way for more mature startups to enter the IPO market. The report also noted that AI funding in India is mostly directed toward applications rather than infrastructure. Meanwhile, the quick commerce sector is expanding which is driven by the success of Blinkit, Zepto, and Swiggy Instamart.
The report also noted a sharp rise in mergers and acquisitions, with 38 deals in Q1—a 41 per cent increase compared to last year.
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