New Delhi, March 9 Funding raised by women co-founded technology startups in India declined in 2025, even as early-stage investments showed resilience and acquisition activity rose sharply, a report said on Monday.
Early-stage funding increased to $533 million in 2025 -- up from $478 million in 2024, a 12 per cent rise (on-year), even as the number of deals dropped to 79 rounds from 93 rounds. Women-led startups in India also recorded 33 acquisitions in 2025, up from 12 in 2024.
In its annual funding report, Tracxn said India’s women-co-founded startup ecosystem secured $1 billion in total equity funding in 2025, compared with $1.1 billion in 2024. This indicated a decline of 12 per cent year-on-year (YoY).
According to the report, deal activity also slowed during the year, with the number of funding rounds falling 29 per cent to 405 in 2025 from 574 in 2024.
Meanwhile, seed-stage funding declined to $261 million across 311 rounds in 2025, down from $342 million raised through 456 rounds in 2024 -- a 24 per cent YoY drop. The decline continues a moderation from the $478 million peak recorded in 2022, the report said.
Late-stage investments saw a sharper pullback. Funding at this stage fell to $213 million across 15 rounds in 2025, compared with $326 million raised through 25 rounds in 2024, a 35 per cent decline, according to the report.
On the public markets front, India recorded two initial public offerings (IPOs) in 2025, down from three listings in 2024, a 33 per cent decline in public market exits, the report highlighted.
Moreover, exit activity through acquisitions surged during the year.
Geographically, Bengaluru emerged as the top-funded city in 2025, raising $384 million, which accounted for 38 per cent of the total funding during the year. While the capital region Mumbai, ranked second with $112 million, 11 per cent of the overall capital raised.
Overall, the Tracxn report noted that while the ecosystem witnessed a decline in funding and deal activity in 2025, acquisition activity rose significantly.
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