India’s startup ecosystem is witnessing an exciting shift in funding trends, with Delhi overtaking Bengaluru as the top city for startup funding in Q1 2025. According to Tracxn’s Geo Quarterly India Tech Report, Delhi accounted for 40% of the total funding raised across the country, securing its place as the top-funded startup hub in India.
Bengaluru, widely recognized as India’s IT capital and startup powerhouse, came in second, followed by Gurugram, Hyderabad, and Mumbai. This change signals a dynamic evolution in India’s investment landscape, with investors looking beyond traditional tech hubs.
India’s Rising Global Ranking in Startup Investments
The Indian tech startup ecosystem continues to grow at an impressive pace. Startups raised $2.5 billion in Q1 2025, reflecting a 13.64% increase from the previous quarter and an 8.7% rise compared to the same period last year. These numbers place India third globally in terms of startup funding, ahead of Malta and Germany, while still trailing behind the US and UK.
💡 Key Highlights from the Report:
✔ Delhi dominates the funding scene, securing $1 billion in startup investments.
✔ Bengaluru follows with $541 million, continuing its stronghold in the tech sector.
✔ Major investment sectors include Auto Tech, Enterprise Applications, and Retail.
✔ India ranks third globally, solidifying its position as a major startup hub.
“While the funding environment remains dynamic, India’s startup ecosystem continues to demonstrate adaptability and growth. Innovation and entrepreneurship remain at the core of this ecosystem, positioning India for long-term success,” said Neha Singh, Co-Founder of Tracxn.
City-Wise Funding Breakdown in Q1 2025
| City | Funding Raised |
|---|---|
| Delhi | $1.0 billion |
| Bengaluru | $541 million |
| Gurugram | $193 million |
| Hyderabad | $168 million |
| Mumbai | $161 million |
Top-Funded Startups in Q1 2025
Some of India’s most promising startups secured massive investments, driving the nation’s overall funding growth.
| Company | Founded (Year, City) | Funding Amount | Funding Round |
|---|---|---|---|
| Erisha E Mobility | 2022, Delhi | $1.0B | Series D |
| Zepto | 2020, Bengaluru | $665M | Series F |
| Flipkart | 2007, Bengaluru | $600M | Series J |
| DMI Finance | 2008, Delhi | $400M | Series E |
| Udaan | 2016, Bengaluru | $377M | Series E |
| TI Clean Mobility | 2022, Chennai | $359M | Series D |
The report also highlighted that three startups—Erisha E Mobility, Darwinbox, and Infra Market—each secured funding rounds of over $100M, indicating continued investor confidence in India’s emerging companies.
The Road Ahead for Indian Startups
The rise of Delhi as India’s top-funded startup hub reflects an expanding investment appetite for diverse markets. While Bengaluru continues to be a tech innovation hub, the growth of Delhi, Gurugram, and Hyderabad showcases a wider distribution of capital across emerging cities.
With strong investor interest, sectoral diversification, and a maturing startup ecosystem, India is poised for even greater startup success in the coming quarters.