Funding raised by women co-founded technology startups in India decreased in 2025, despite a rise in early-stage investments and a notable increase in acquisition activity, as per a report. Early-stage funding reached $533 million in 2025, marking a 12% increase from the previous year’s $478 million, although the number of deals dropped to 79 rounds from 93. Women-led startups in India also saw a rise in acquisitions, with 33 recorded in 2025 compared to 12 in 2024.
Tracxn’s annual funding report revealed that India’s women-co-founded startup ecosystem secured a total of $1 billion in equity funding in 2025, down from $1.1 billion in 2024, indicating a 12% year-on-year decline. The report also highlighted a 29% decrease in deal activity, with the number of funding rounds falling to 405 in 2025 from 574 in 2024.
In 2025, seed-stage funding in India declined to $261 million across 311 rounds, a drop from the $342 million raised through 456 rounds in 2024, representing a 24% year-on-year decrease. Late-stage investments experienced a more significant pullback, with funding falling to $213 million across 15 rounds in 2025, compared to $326 million raised through 25 rounds in 2024, a 35% decline.
India witnessed a decrease in initial public offerings (IPOs) in 2025, with two recorded compared to three in 2024, marking a 33% decline in public market exits. Bengaluru emerged as the top-funded city in 2025, raising $384 million, which accounted for 38% of the total funding, while Mumbai ranked second with $112 million, representing 11% of the overall capital raised.
Overall, the Tracxn report highlighted a decline in funding and deal activity in 2025 for India’s startup ecosystem, although acquisition activity notably increased.
