India Startup Funding Cools in 2025: Late-Stage Dips, Early-Stage & IPOs Rise

• India's startup funding slightly decreased in 2025 to $9.8 billion from $10.1 billion in 2024, primarily due to a late-stage capital pullback.
• Late-stage funding fell 9% to $7.39 billion, influenced by global capital shifting to AI-first leaders and follow-on rounds spilling into the next year.
• Early-stage funding rebounded 20% to $2.42 billion, driven by the promise of AI, new opportunities, and higher conviction with larger average cheques.
• The late-stage slowdown pushed 15 startups to raise nearly Rs 40,000 crore through IPOs in 2025, a significant increase from 2024, providing crucial balance-sheet capital.
• The 2025 data indicates a rebalancing of India's startup funding, with public markets and early-stage capital becoming central pillars as growth-stage funding recovers gradually.

Why It Matters: India's startup funding rebalances in 2025 with late-stage dip, early-stage rebound, and IPO surge.