Indian startups raise $6.7 Bn in H1 amid IPO buzz: Entrackr Report

Venture capital inflow into Indian startups remained steady during the first half of calendar year 2025, with startups raising nearly $7 billion. Supported by several deals exceeding $100 million, including four that crossed the $200 million mark, startup funding in 2025 is closely tracking last year's trend. Moreover, tighter control on layoffs, a higher number of IPO filings, and the launch of large funds have helped maintain overall stability.

[Overview]

According to data compiled by TheKredible, Indian startups raised approximately $6.72 billion in funding during the first half of 2025. This amount included 148 growth and late-stage deals totaling $5.15 billion, along with 404 early-stage deals worth $1.57 billion. Additionally, there were 74 undisclosed deals during this period. 

During this period, five startups including Jumbotail, Drools, Porter, Netradyne, and Juspay entered the unicorn club. Interestingly, all of them are based in Bengaluru.

A recent report by Tracxn placed India as the third largest recipient of startup funding globally, following the United States and the United Kingdom. However, the report curiously omitted China, which raised $6.9 billion in the first quarter of 2025 alone.

[Y-o-Y and M-o-M trend]

The H1 funding closely mirrors the same period in 2024, when the ecosystem secured around $7 billion over six months. While the funding in the last six months surpassed the H1 2023 numbers, it falls significantly short of the $20 billion raised in H1 2022 and $13 billion in H1 2021. On a month-on-month basis, June saw just under $1 billion in funding, lower than the $1.14 billion raised in May. This is also the third time total monthly funding has fallen below the $1 billion mark during the first half of 2025.

Visit TheKredible for complete year-on-year funding data.

[Top 10 growth stage deals in H1]

H1 2025 saw a flurry of late-stage activity with ten startups raising over $100 million each. Leading the chart was AI-focused Impetus Technologies with $350 million, followed by healthtech player Innovaccer at $275 million and cross-border fintech Zolve at $251 million. Logistics firm Porter, HR tech startup Darwinbox, and used-car platform Spinny also featured among the top, alongside Infra.Market, Jumbotail, Raphe mPhibr, and Leap Finance. Noida-based Raphe mPhibr scooped up $100 million in the largest private funding round raised by an Indian aerospace company. 

Check TheKredible for more information.

[Top 10 early stage deals in H1] 

PB Healthcare stood out with a massive $218 million seed round, the largest in this bracket. Fintech player Saarthi Finance followed with $55.5 million in its Series A round, while SaaS startup Atomicwork secured $25 million. The list also featured EKA Mobility ($23.3 million), Sanlayan ($22 million), and Lucidity ($21 million). 

[Mergers and Acquisitions]

H1 2025 saw a mix of strategic and consolidation-driven acquisitions in the Indian startup ecosystem, with consumer goods giant HUL leading the charts through its $350 million acquisition of D2C skincare brand Minimalist. Everstone followed with a $200 million buyout of SaaS player Wingify, while Delhivery continued its logistics expansion by acquiring Ecom Express for $166 million. Other notable deals included TAL Education snapping up edtech firm Epic for $95 million and Head Digital Works acquiring Deltatech Gaming for $56.6 million. The fintech space remained active, with Razorpay, InCred Money, and Findi making targeted acquisitions to strengthen vertical capabilities.

Check TheKredible for more information.

[City and segment wise deals]

Bengaluru led startup funding in H1 2025 with $2.93 billion across 218 deals, accounting for over 43% of the total. Delhi NCR followed with $1.62 billion from 166 deals, while Mumbai secured $880 million through 99 deals. Chennai and Pune saw moderate activity, raising $136 million and $180 million respectively. These five cities together contributed the majority of venture funding during the period.

Fintech led startup funding in H1 2025 with $1.58 billion across 83 deals, followed by healthtech and e-commerce with $828 million and $684 million respectively. AI and foodtech also saw steady interest, raising $523 million and $237 million.

[Stage wise deals]

In H1 2025, Series B deals topped the charts with $1.35 billion in funding, followed by Series D and Series A rounds, which brought in $1.01 billion and $960 million respectively. Seed stage remained the busiest with over 200 deals, while Series C raised $788 million. Early-stage rounds like pre-seed and pre-Series A saw limited activity, and debt funding contributed $413 million. Check TheKredible for more details.

For complete stage-wise funding, visit TheKredible.

[Layoffs, shutdowns and departures]

Indian startups saw a wave of layoffs in H1 2025, with companies like VerSe, Gupshup, and Zypp Electric leading the cuts. The trend reflects growing caution amid funding challenges and a shift toward leaner operations. However, overall layoffs stood at around 1,000 during H1, excluding public companies like Zomato and Ola Electric, which laid off 600 and 1,000 employees respectively. In comparison, Indian startups laid off 3,300 people in H1 2024, marking a sharp decline in large-scale job cuts seen in previous years.

[Comparison: Q1 vs Q2]

For a clearer picture of how startup funding and sectoral trends evolved through the year, we’ve compiled a Q1 vs Q2 comparison chart highlighting key shifts across both quarters.

[Trends in H1 2025]

Raining IPOs and confidential filings: Several Indian startups including Shadowfax, Physics Wallah, boAt, Urban Company, Shiprocket, Groww, Pine Labs, Capillary Tech, Wakefit, Indiqube, and Curefoods have filed their draft red herring prospectuses (DRHPs) and are gearing up for their stock market debuts in the coming months. Interestingly, Shadowfax, boAt, Shiprocket, Groww, Aequs and PhysicsWallah chose the confidential route for their IPOs.

Vertical consolidation via M&A: M&A deals such as Razorpay acquiring POP, InCred Money acquiring Stocko, and Findi acquiring BANKIT indicate that startups are doubling down on vertical integration and specialization to enhance their offerings.

Fund launches: Startup funding in India is expected to stay strong in 2025, backed by large venture capital funds announced in the first half of the year. A91 Partners ($665M), Accel ($650M), L Catterton ($600M), Multiples Asset Management ($430M), and Bessemer Venture Partners ($350M) were among the top fundraisers. These developments indicate a strong capital base and growing investor readiness to back promising startups in the coming months.

Healthcare and AI: Healthcare and AI saw strong funding in H1 2025 and remained in the top five sectors, just like in 2024. Healthtech raised $828 million and AI attracted $523 million, a sign of continued investor confidence in both areas.

Conclusion:  The funding broadly follows the trends we have expected. If anything, being a shade below expectations. Fintech has expectedly done well, although critical areas like deeptech, agritech and nascent ones like minerals processing might yet  make an impact before the year is over. The lineup of exits via the IPO route continues to establish the maturity of the ecosystem, and will encourage ever higher participation from domestic funds and investors. We would be a little surprised if e-commerce and foodtech continue to attract funds, as the category is increasingly reaching its end stage shakeout, where some consolidation might follow if funding dries up. Foodtech again is another category which has not really delivered as expected, and the Curefoods IPO, if it happens, will provide a key pointer to future valuations.