Bengaluru, March 24 (SocialNews.XYZ) Domestic tech startups raised $2.5 billion in the January-March period this year (Q1 2025) to date, marking a 13.64 per cent increase from the previous quarter and an 8.7 per cent rise from the same period last year -- making India the third most-funded country globally -- ahead of Malta and Germany and behind the US and the UK, a report showed on Monday.
Late-stage rounds witnessed a total funding of $1.8 billion in Q1 2025 (to date), an increase of 38.46 per cent compared to $1.3 billion raised in Q4 2024, and an increase of 114.54 per cent compared to $839 million raised in Q1 2024.
A total of 38 acquisitions took place this quarter, marking a 15.15 per cent increase from the previous quarter and a 40.74 per cent rise from 27 acquisitions in Q1 2024, according to Tracxn, a leading market intelligence platform.
Neha Singh, Co-founder of Tracxn, said that while the funding environment remains dynamic, India’s startup ecosystem continues to demonstrate adaptability and growth.
“Key sectors like auto tech, enterprise applications and retail are attracting investor interest, and the rise in acquisitions signals a maturing market. Innovation and entrepreneurship remain at the core of this ecosystem, positioning India for long-term success,” she mentioned.
Auto tech received funding of $1.1 billion in Q1 2025, which was an increase of 403.35 per cent compared to $214.6 million raised in Q4 2024 and an increase of 339.71 per cent compared to $245.7 million raised in Q1 2024.
Enterprise Applications received $650.7 million, a growth of 21.94 per cent compared to $533.6 million raised in the previous quarter.
Retail received $481.5 million in funding, marking a 21.67 per cent increase from the last quarter, according to the report.
Delhi-based tech firms accounted for 40 per cent of all funding seen by tech companies across India. This was followed by Bengaluru accounting for 21.64 per cent.
Source: IANS
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