Indian tech startups secured $9.1 billion in funding in 2025, marking a 23% increase from the previous year. A report by Nasscom and Zinnov highlighted a shift towards more selective funding tied to specific milestones, indicating a move towards execution-led maturity in the tech startup ecosystem. The focus of capital investment has shifted towards scalable and commercialization-ready ventures.
The report emphasized that a significant portion, 74%, of the funding activity was directed towards seed and early-stage startups, underscoring the robust innovation pipeline in India. DeepTech startups, a key component of India’s innovation landscape, saw substantial growth, with over 4,200 DeepTech startups in the country, including more than 550 established in 2025.
In 2025, DeepTech ventures raised $2.3 billion, a 37% increase year-on-year, with AI dominating the sector, accounting for 84% of startups and 91% of the total funding. The integration of AI technology across various industry verticals and enterprise applications has been on the rise, reflecting its significance in driving innovation in India’s startup ecosystem.
Rajesh Nambiar, President of Nasscom, highlighted the pivotal role of AI in shaping India’s startup landscape, stating that the ecosystem is transitioning into a more disciplined growth phase with AI serving as the core infrastructure for the next wave of innovation. The report also pointed out that venture capital investments in India are now prioritizing proven business models, clear paths to monetization, and demonstrated execution capabilities.
