Indian Tech Startup Funding Report Q3 2025
In Q3 2025, Indian startups raised over $2.1 Bn in funding, a 38% year-on-year decline that underscores the prevailing market uncertainty. The pullback was visible across stages — seed, growth, and late stage — all recording double-digit declines in funding amounts. This slowdown has been compounded by geopolitical pressures, particularly escalating trade tensions between the United States and India, which have fuelled volatility in the investment climate and triggered a more cautious stance among investors. In Q3 2025, ecommerce retained its lead as the top-funded sector, fuelled by a handful of large growth stage rounds, while AI continued to dominate early-stage investment themes, attracting investor attention across verticals from fintech to healthtech. Findings from the Q3 2025 Startup Investor Survey reveal that one in five investors reported heightened challenges as limited partners (LPs) in the US adopt a more restrained approach amid shifting diplomatic dynamics. Since the US continues to be a leading source of LP capital for India, these strains add another layer of complexity to an already uncertain funding environment.
