Indian tech start-ups raised $9.1 bn in 2025, a 23% YoY increase: Nasscom-Zinnov analysis

In 2025, Indian tech start-ups raised $9.1 billion, marking a 23% year-on-year increase, even as capital became more selective, milestone-linked, and increasingly concentrated in scalable, commercialisation-ready ventures, said a Nasscom-Zinnov analysis.

Deep-tech funding surged 37% to $2.3 billion last year with AI driving 91% of investments. Over 140 tech M&A deals were recorded in 2025, a close to 2x jump over last year. Seed and early-stage deals accounted for 74% of total funding activity with AI capital deployment and innovation driving the momentum, said the study.

Rajesh Nambiar, President, Nasscom, said, “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. This signal growing global confidence in India’s ability to build, deploy, and commercialize AI at scale across sectors ranging from enterprise software and cybersecurity to defense and industrial systems.’’

The next chapter would be defined by how effectively we translate AI innovation into market adoption, intellectual property, and globally competitive platforms, he added.

Indian Tech Start-up Report 2025 titled: “Momentum to Maturity: India’s Start-up Ecosystem at a Strategic Inflection Point, Indian Tech Start-up Report 2025,” offers an in-depth analysis of the evolving dynamics of the country’s technology start-up ecosystem and the structural shifts shaping its next phase of growth. As per the document, the country’s technology start-up ecosystem was transitioning from volume-driven expansion to execution-led maturity.

According to the report, with an estimated 31,000–34,000 start-ups, new venture formation is increasingly concentrated in established hubs and proven sectors, highlighting investor preference for infrastructure readiness, talent density, and faster commercialisation pathways.

Pari Natarajan, CEO, Zinnov said the ecosystems that would lead the next decade would be those that institutionalise demand, shorten the journey from Seed to Series A, and build predictable commercialisation pathways.

“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,’’ he added.