Indian Tech Startup Funding Report Q3 2025 (Inc42)

Summary

• Indian startups raised $2.1 Bn+ across 240 deals in Q3 2025, with total investment down 38% and deal count down 10% year-on-year.p.6
• Median ticket size was $3 Mn versus $2.9 Mn in Q3 2024, with only 1 mega deal versus 10 a year earlier.p.7
• Funds worth $9 Bn+ were launched for Indian startups in 2025, including over $2.5 Bn announced in Q3 by 25 investors.p.33
• 51% of surveyed Indian startup investors are bullish on the 2026 funding outlook, while 27% remain cautious.p.20
• Over 70% of surveyed investors (73.0%) saw no portfolio exits in Q3 2025.p.24
• India has produced 124 unicorns, of which 109 are currently valued at $1 Bn or above.p.40

Key insights

1. Unique investor count climbed 7% YoY to 676 in Q3 2025.p.17
2. Seed, growth and late stage funding amounts declined year-on-year by 36%, 16% and 53% respectively.p.16
3. M&A deal activity fell 28% year-on-year in Q3 2025.p.13
4. A 50% US tariff on Indian imports in August 2025 escalated trade tensions, with potential implications for Indian VC fundraising.p.12
5. 41% of surveyed investors prefer secondary sales as an exit route in 2025.p.25
6. 58% of investors are optimistic about early stage startups in 2026, while pre-IPO rounds draw only 3%.p.21
7. 41% of investors allocate up to 40% of their portfolio to AI, but only 7% make it a core focus.p.22
8. High capital requirements (37%) and scarce patient capital (29%) are the main barriers to deeptech innovation.p.29
9. 54% of surveyed investors believe the real-money gaming ban was poorly implemented, while 17% support the ban.p.23