Bengaluru Regains The Crown Of India’s Top Startup Hub

After two years of correction and recalibration, 2025 marked a year of stabilisation for India’s startup funding ecosystem. According to Inc42’s “Annual Indian Startup Trends Report, 2025”, Indian startups raised about $11 Bn across 936+ deals, led by startups based in Bengaluru. 

Though overall funding was down 8% YoY from 2024, it was higher than the $10 Bn raised in 2023, highlighting that private capital flows have settled into a new, more disciplined normal. 

Even as overall funding stayed muted compared to the 2021–22 peak, capital increasingly concentrated around clearer revenue models, late stage resilience and selective growth stage bets, alongside a parallel IPO boom that saw 18 startups tap public markets during the year.

Against this backdrop of consolidation rather than exuberance, funding activity continued to cluster around India’s top startup hubs. 

Bengaluru, Delhi NCR and Mumbai together accounted for the bulk of the $11 Bn raised in 2025, reflecting investor preference for proven startup ecosystems. However, the data also points to a growing divergence in how each hub is evolving.

Bengaluru continued to display depth-driven resilience, supported by mature tech talent and repeat founders. Delhi NCR, meanwhile, stood out for its deal activity and sharper focus on exits. Mumbai charted a steadier path, with capital flowing consistently into enterprise tech and fintech.

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Bengaluru Funding Regains Momentum

Bengaluru startups raised $4.6 Bn+ across nearly 300 funding deals in 2025, the highest among all Indian startup hubs. On a YoY basis, the capital deployment in the city over the past year zoomed by about 35% while the deal count improved by about 13%.

The city also maintained a lead in deal count, underscoring its continued appeal across stages, from early stage SaaS to late stage ecommerce and fintech platforms.

Important to highlight that Bengaluru, which has remained on the top of startup investors preference list for long, was toppled off the top spot in 2024 by Mumbai. Last year, overall funding for Mumbai gained a hefty push on the back of Zepto’s $1.1 Bn fundraise. However, the startup moved base from Mumbai to Bengaluru in 2025 and later raised $450 Mn, adding on to Bengaluru’s dominance in funding trends in 2025.  

Ecommerce emerged as the top-funded sector in Bengaluru this year, with startups such as Zepto, Groww, Udaan, Jumbotail and Porter securing large-ticket rounds. Late stage enterprise tech startups such as InMobi, MoEngage, and Netradyne further reinforced the city’s strength in building globally scalable new-age tech companies.

Despite broader caution in venture capital deployment, Bengaluru’s depth allowed it to absorb market cycles better than other hubs. Since 2014, Bengaluru-based startups have raised over $76 Bn, accounting for 45% of India’s total startup funding, with more than 2,000 funded startups and over 350 consolidation transactions recorded over the last decade.

However, the long-term data also signals a structural shift.

Bengaluru’s 10-year funding CAGR between 2015 and 2025 stood at 6%, reflecting a gradual moderation as the ecosystem transitions from hyper-growth to consolidation and exits.

Delhi NCR Shows Early Stage Strength

Delhi NCR startups raised $2.2 Bn+ across 224 deals in 2025, placing the region second on the funding charts. While total capital raised trailed Bengaluru by a wide margin, the private capital infusion in the startup hub declined by slightly from the $2.3 Bn raised by Delhi NCR-based startups across 252 deals in 2024. 

Ecommerce once again topped the charts in Delhi NCR, with startups such as Spinny, OYO, InsuranceDekho and Innovaccer featuring prominently among funded companies. The region also saw strong interest in EVs, defence tech and B2B platforms, with startups like Raphe mPhibr, Euler Motors and Oxyzo attracting investor attention.

Delhi NCR startups have raised $47 Bn+ since 2014, accounting for 28% of total funding during this period.

The region also leads India’s startup ecosystem in terms of listed companies, with 23 publicly listed new-age tech firms, reflecting its growing role as an exit-driven ecosystem.

However, Delhi NCR’s negative 10-year funding CAGR of -10% (2015–25) highlights the uneven nature of capital inflows over the decade, marked by sharp peaks followed by corrections, particularly in consumer internet and edtech.

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Mumbai Startups: Enterprise & Financial Services Reign

Mumbai startups raised $2 Bn+ across 146 deals in 2025, ranking third among India’s top startup hubs. While deal volume remained lower than Bengaluru and Delhi NCR, Mumbai continued to punch above its weight in enterprise-led, capital-efficient business models.

Ecommerce remains the top-funded sector in Mumbai as well, but a closer look shows growing dominance of fintech, health tech and enterprise tech startups.. Startups such as Infra.Market, PharmEasy, InCred, Snapmint, Truemeds and Kuku FM bagged some of the notable funding rounds during the year.

Since 2014, Mumbai startups have raised $24 Bn+, representing 14% of total startup funding, with over 1,100 funded startups and 217+ M&A transactions recorded. Importantly, Mumbai also maintains a balanced ecosystem with 18 unicorns, 34 soonicorns and 14 minicorns, indicating steady pipeline creation rather than sporadic spikes.

Mumbai’s 10-year funding CAGR of 14% stands out among the three major hubs, reflecting consistent, compounding growth rather than cyclical surges.

Pune, Chennai Lead The Wave Of Emerging Hubs

Beyond the traditional trio, Pune and Chennai emerged as the most prominent startup hubs in 2025, each carving out clear sectoral identities.

Pune startups raised $450 Mn+ across 39 deals, with fintech leading the charge. Startups such as EKA Mobility, Fibe, AgroStar, Easebuzz and Infinite Uptime drove funding momentum, reinforcing Pune’s position as a hub for industrial tech and fintech innovation.

Chennai startups raised $432 Mn+ across 30 deals, with advanced hardware and deeptech emerging as the defining theme. Startups such as Agnikul, Garuda Aerospace, Yubi, Uniphore and Fabheads highlighted the city’s growing role in aerospace, manufacturing and AI-led enterprise solutions.

[Edited by Akshit Pushkarna]