Nasscom: Indian Startups Funded $9.1B in 2025

- While total funding in 2025 was around $10.5-$13 billion, this represents a modest decline from 2024. However, the number of funding rounds dropped more significantly, indicating that investors are writing larger checks for fewer, more established companies. - Investment in AI and deep tech startups surged in 2025, with AI-focused companies raising $1.2 billion, a 58% year-over-year increase. Deep tech's share of total venture capital and private equity funding has grown from 4% in 2016 to approximately 15% in 2025. - There was a noticeable shift in funding stages, with early-stage funding showing resilience and even growth, while seed and late-stage funding saw a contraction. This suggests investor confidence in startups with proven product-market fit and a clear path to revenue. - Fintech, Enterprise Applications, and Retail were the top-funded sectors in 2025. Quick commerce platform Zepto led with a $450 million funding round, and business AI firm Uniphore raised $260 million. - The year 2025 was significant for startup IPOs, with 18 tech companies going public, a notable increase from 13 in 2024. This provided substantial exit opportunities for early investors and signaled a maturing ecosystem. - A growing number of startups are emerging from Tier-2 and Tier-3 cities, accounting for roughly 50% of new startups. This trend highlights the decentralization of India's entrepreneurial landscape beyond major metropolitan hubs. - The Indian government continues to play a supportive role through initiatives like the Fund of Funds for Startups (FFS) and the Startup India Seed Fund Scheme, which aim to increase access to domestic capital. - Despite the overall positive trends, the number of startup shutdowns reached a three-year high in 2025, with 28 startups ceasing operations. This underscores the competitive and challenging environment for new ventures.