Indian Tech Startups Experience Significant Growth in 2025

In 2025, Indian tech startups raised an impressive $9.1 billion, reflecting a 23% increase from the previous year. The funding landscape is evolving, with a focus on milestone-driven investments and a shift towards execution-led growth. DeepTech has become a significant player, with over 4,200 startups and substantial funding in AI. The report highlights a growing trend of mergers and acquisitions, indicating a move towards internal innovation. Industry leaders emphasize the importance of transforming prototypes into viable products to enhance India's competitive edge in the global startup ecosystem.

By Narendra Chaudhary Feb 25, 2026, 17:31 IST

Overview of Funding Trends in Indian Tech Startups

New Delhi, Feb 25: Indian technology startups secured $9.1 billion in funding during 2025, marking a 23% increase compared to the previous year, according to a recent report. The funding landscape is becoming more discerning, with a focus on milestones.

The report from Nasscom and Zinnov indicates a shift in India's tech startup ecosystem from rapid growth to a more mature, execution-focused approach, with investments directed towards scalable and commercialization-ready businesses.

It was highlighted that 74% of the investment activity occurred at the seed and early stages, showcasing the robustness of India's innovation pipeline.

"DeepTech has emerged as a crucial component of India's innovation landscape. The country now boasts over 4,200 DeepTech startups, with more than 550 established in 2025, indicating ongoing progress in advanced technology development," the report stated.

DeepTech startups raised $2.3 billion in 2025, reflecting a 37% year-on-year increase, with artificial intelligence (AI) representing 84% of these startups and 91% of the funding.

AI is increasingly integrated across various industry sectors and enterprise applications.

Rajesh Nambiar, President of Nasscom, remarked, "India's startup ecosystem is transitioning into a more structured growth phase, with AI at the forefront of this evolution, serving as a fundamental infrastructure for the next wave of innovation in India."

In alignment with global investment trends, venture capital in India is now focusing on validated business models, clear monetization strategies, and proven execution capabilities.

The ecosystem witnessed over 140 technology mergers and acquisitions in 2025, nearly doubling the figures from 2024, with corporations contributing to about 36% of the total activity.

The report emphasized a shift towards capability-driven acquisitions as companies aim to foster innovation internally rather than outsourcing it. Additionally, startup patent filings have surged by approximately 68% since 2020-21.

Pari Natarajan, CEO of Zinnov, stated, "If India can effectively convert prototypes into paying customers, it will not only maintain its status as one of the largest startup hubs globally but also enhance its competitiveness on the world stage."