New Delhi: India’s startups raised approximately $13 billion in 2025, about 10 % lower than the $14.4 billion secured in 2024, reflecting the absence of blockbuster late-stage deals and a more cautious investor stance. Despite this dip, the year’s capital deployment remained above the levels seen in earlier years of the so-called “funding winter,” underscoring continued confidence in long-term prospects.
Industry trackers point to slower but more disciplined investment activity, where fewer mega rounds and a retreat from high-burn bets contrasted with selective backing of sustainable business models and fundamental growth stories. This shift aligns with broader global trends where investors prioritise unit economics and path-to-profitability over sheer valuation growth.
A defining feature of 2025 was the surge in public market activity for startups. India’s IPO market created history by raising a record ₹1.75 lakh crore through mainboard listings, drawing strong retail and institutional interest and amplifying liquidity opportunities outside traditional private rounds.
While funding slowed, indicators of ecosystem health emerged on multiple fronts. December alone saw startups raise over $1 billion, up around 6 % year-on-year, signalling resiliency in capital flows even as broader macro uncertainty lingered.
Despite these positives, startup shutdowns, though far lower than in 2024, continued to affect the sector. Official figures show roughly 730 closures in 2025, down sharply from nearly 3,900 the previous year, highlighting both recovery and persistent operational challenges faced by entrepreneurial venturesm
Analysts say 2025 marked a transition year — from growth at all costs to growth with discipline, where founders focused on clearer paths to profitability, market-fit products, and strategic M&A or exit options instead of relying on continuous capital infusions. Investors, too, have become more selective, favouring startups with solid unit economics, recurring revenues, and defensible niches amid global funding headwinds.
Going into 2026, the ecosystem is positioned at a inflection point — where broader access to public capital markets, sharper investor focus, and stronger business fundamentals could define a new era of expansion and value creation for India’s startups.