In a significant shift for India's startup ecosystem, the deeptech sector witnessed a notable rise in total funding during 2025, even as investors became more selective and risk-averse. Data from market intelligence platform Tracxn reveals that while the overall capital inflow increased, it was concentrated in fewer companies, at later stages, and through larger individual investments.
Funding Rises as Deals Fall: A Year of Concentration
The headline figure shows a clear upward trajectory. Total deeptech funding in India climbed to $1.6 billion in 2025. This marks a substantial increase from the $1.2 billion recorded in 2024 and $1.1 billion in 2023. However, this growth came alongside a dramatic contraction in the number of transactions. The year saw only 274 funding rounds, a sharp fall from 393 in 2024 and 350 in 2023. This deal count is the lowest the sector has seen in five years, highlighting a market moving towards selectivity.
The concentration of capital was most evident at the top. A handful of large rounds accounted for a dominant share of the total investment. The trend underscores a strategic pivot where investors are backing proven, scaling companies rather than spreading bets across early-stage experimentation.
Top Deals and Sector Focus
The five largest funding rounds in 2025 were pivotal in driving the total. The list was led by two major players: GreenLine, a logistics-focused clean transport platform, and Uniphore, a conversational AI firm. Together, these two companies raised over $500 million. They were followed by other significant rounds from defence and aerospace startup Raphe, legal technology company Spotdraft, and spacetech firm Digantara.
This mix of sectors—clean transport, artificial intelligence, defence, enterprise software, and spacetech—demonstrates where mature investor confidence currently lies. Funding is clustering around a small set of companies that have demonstrated scale or are in the process of scaling significantly.
Stage-Wise Trends: Early-Stage Boom, Seed Stage Squeeze
A breakdown of the funding by stage reveals a clear recalibration of risk appetite among venture capitalists. Interestingly, early-stage funding surged to $971.9 million in 2025, the highest level ever tracked by Tracxn for this segment. Simultaneously, late-stage funding showed recovery, reaching $345.5 million after a weak performance in 2023.
The squeeze was felt most acutely at the very entry point. Seed-stage funding declined to $268.8 million from $302 million in 2024. This drop reflects tighter screening and more cautious bets on the very earliest ideas, as investors prioritize companies with more established traction and clearer paths to market.
The data paints a picture of a maturing deeptech landscape in India. The rise in total funding is not a signal of a broad-based, risk-on environment returning. Instead, it indicates a phase of consolidation and focused capital deployment, where larger cheques are being written for companies that have moved beyond the initial idea stage and are poised for growth in strategic, high-impact sectors.
