Indian startups collectively secured nearly $1.65 billion in funding during February 2025, marking a 19.5 percent increase compared to January’s funding total of $1.38 billion, according to a newly released report.
The report also highlighted that the median valuation of these startups in February 2025 stood at $83.2 billion, reflecting the growing investor confidence in India’s startup ecosystem.
Funding Trends in FY 2024-25
Throughout the 2024-25 financial year, Indian startups have collectively raised $25.4 billion across approximately 2,200 funding rounds, demonstrating the resilience and expansion of the Indian startup landscape despite global economic fluctuations.
Bengaluru, widely regarded as India’s startup capital, continued to lead in funding activity. Startups based in Bengaluru raised $353 million in February 2025, the highest amount secured by any Indian city during the month. The median funding round size for Bengaluru startups was $2 million, reflecting a strong and steady influx of investment into emerging and growth-stage companies.
Mumbai also experienced notable funding activity, with startups in the city raising $102 million in total. However, Mumbai-based startups had a higher median round size of $5 million, indicating that while fewer deals were closed compared to Bengaluru, the investments were larger on average.
AI Startup Investments on the Rise
Investment in artificial intelligence (AI) startups in India has been steadily growing, with the sector witnessing a significant funding surge in recent years. In 2024 alone, AI startups in India raised $164.9 million, which represents a more than 50 percent increase from $108.3 million in 2023.
From 2019 to 2025, AI-focused startups in India have continuously attracted substantial investments, reinforcing India’s position as a crucial player in the global AI ecosystem, according to data provided by Traxcn.
India’s Startup Ecosystem Continues to Expand
With over 1.59 lakh startups officially recognized by the Department for Promotion of Industry and Internal Trade (DPIIT), India has cemented its status as the third-largest startup ecosystem in the world.
Last week alone, 21 Indian startups collectively secured approximately $105.87 million in funding. Among them, three startups successfully raised funds at the growth stage, while 16 early-stage startups managed to attract crucial investments.
The previous week saw 22 startups securing $184.4 million in total funding, showcasing the dynamic and fast-paced nature of India’s startup ecosystem. Over the last eight weeks, startup funding in India has averaged approximately $317.35 million per week, with around 28 funding deals taking place weekly.
As the Indian startup landscape continues to thrive, the increasing investments, particularly in AI-driven ventures, underscore the country’s growing significance in the global technology and innovation ecosystem.
