Tech Startup Raises $2.5 Billion, India Highest Funding Country After US and UK

New Delhi| The country’s technology (tech) startup companies have raised $2.5 billion in funding in the first quarter of 2025. This is 13.64 per cent higher than the previous quarter and 8.7 per cent on an annual basis. With this achievement, India has become the third most funded country after America and Britain. Startups in vehicle technology, enterprises applications and retail led the way in raising funding in the first quarter of 2025, market intelligence platform Traxon reported.

Boom in funding of big startups

Large startups received $1.8 billion in funding in the first quarter of 2025, up 38.46 percent and 114.54 percent on a quarterly and annual basis, respectively.

Seed startup funding declined 23.79 percent on a quarterly basis to $157 million. This is down 55.77 percent from the first quarter of 2024.

Funding for early-stage startups has declined by 23.7 percent and 52 percent, respectively.

Not a single startup in the country became a unicorn (a startup with a valuation of more than one billion dollars) in the first quarter of 2025, the report said. Two unicorns were formed in the same quarter of 2024.

Other special features of the report

Delhi’s tech startups accounted for 40 per cent of the $2.5 billion funding received in the quarter. Bangalore came second with 21.64 per cent.

There were 38 acquisitions during this time, up 15.15 per cent and 40.74 per cent year-on-year compared to the previous quarter.

Six startup companies including Nucleus, Maxvolt Energy and Harshil Agrotech entered the stock market through IPOs.