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Selective funding defines India’s startup investment landscape
India’s startup funding slowed in 2025, with investors prioritizing selective bets and capital efficiency over rapid expansion.
Indian startups raised around $11 billion in 2025 as investors adopted a more selective approach to funding. While overall deal volumes declined, capital flowed toward deep tech and strategically important sectors. Government initiatives also supported venture activity, including commitments toward advanced technology funds. The funding environment reflects a shift from rapid expansion to sustainability and capital efficiency, reshaping how startups plan growth and fundraising strategies.