New Delhi, Feb 25 Indian tech startups raised $9.1 billion in 2025, up 23 per cent year-on-year, with funding becoming more selective and milestone-linked, a report said on Wednesday.
India’s technology startup ecosystem is moving from volume-driven expansion to execution-led maturity, as capital was concentrated in scalable, commercialisation-ready ventures, the report from Nasscom and Zinnov said.
It noted that 74 per cent of deal activity was at seed and early stages, underscoring the strength of India’s innovation pipeline.
"DeepTech continued to emerge as a defining pillar of India’s innovation trajectory. India now hosts over 4,200 DeepTech start-ups, including more than 550 founded in 2025, reflecting continued momentum in advanced technology development," the report said.
DeepTech ventures raised $2.3 billion in 2025, up 37 per cent YoY, with AI accounting for 84 per cent of start-ups and 91 per cent of funding, the report further said.
AI was increasingly embedded across multiple industry verticals and enterprise applications.
“India’s start-up ecosystem is entering a more disciplined phase of growth, and AI is clearly at the centre of this transition, emerging as core infrastructure for India’s next innovation cycle,” said Rajesh Nambiar, President, Nasscom.
In line with global investment patterns, venture capital in India is now prioritizing validated business models, clear pathways to monetization, and demonstrated execution capability, the report noted.
The ecosystem recorded over 140 technology M&A deals in 2025, nearly double that of 2024, with corporates accounting for approximately 36 per cent of total activity.
The report highlighted the change as the rise of capability-led acquisitions as enterprises look to build rather than outsource innovation. Start-up patent filings rose approximately 68 per cent since 2020–21.
“If India can systematically transform prototypes into paying customers, it will not only remain one of the world’s largest start-up hubs — it will become one of the most globally competitive,” said Pari Natarajan, CEO, Zinnov.
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