India's tech startups raise Rs. 21,395 crore (US$ 2.5 billion) in Q1 FY25, up 8.7% from 2024
- IBEF
- March 25, 2025
India's tech startups raised Rs. 21,395 crore (US$ 2.5 billion) in Q1 of FY25, an 8.7% increase from 2024 and a 13.64% rise from the previous quarter. This growth positions India as the third highest-funded geography globally, behind the United States and the United Kingdom. Late-stage startups attracted the highest total funding of Rs. 15,404 crore (US$ 1.8 billion) in Q1 FY25, compared to Rs. 11,125 crore (US$1.3 billion) in Q4 FY24. Seed-stage startups raised Rs. 1,343.61 crore (US$ 157 million), while early-stage startups secured Rs. 4,518 crore (US$ 528 million). Delhi-based tech firms accounted for 40% of the total funding raised by tech companies across India, followed by Bengaluru with 21.64%. Top investors in Q1 FY25 included Accel, Blume Ventures, and Peak XV Partners. Venture Catalysts, Unicorn India Ventures, and YourNest led seed-stage investments. At the same time, Avataar Ventures and Sofina were the top late-stage investors. This quarter, Accel, Peak XV Partners, and Vertex Ventures were the leading early-stage investors.
The report highlighted that the top performing sectors were auto tech, enterprise applications, and retail. Enterprise applications recorded Rs. 4,120.68 crore (US$ 481.5 million) in funding, up 21.67% from the previous quarter. A total of six unicorns went for initial public offerings (IPOs) in Q1 FY25, including Nukleus, Maxvolt Energy, Volercars, and Harshil Agrotech. However, no new unicorns were created this quarter compared to two in Q1 FY24. Regarding acquisitions, Q1 FY25 saw 38 deals, marking a 15.15% increase from the previous quarter and a 40.74% rise from Q1 FY24. The largest deal was Magma General's Rs. 4,416 crore (US$ 516 million) acquisition by DS Group and Patanjali Ayurved, surpassing Minimalist's Rs. 2,995 crore (US$ 350 million) acquisition by Hindustan Unilever. Co-founder of Tracxn, Ms. Neha Singh, emphasized the dynamic funding environment and the adaptability and growth of India's startup ecosystem. Key sectors like auto tech, enterprise applications, and retail continue to attract investor interest, and the rise in acquisitions signals a maturing market.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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