Venture capital funding for Indian startups fell 18% year-on-year in the first nine months of 2025, reaching US$8.6 billion across 926 deals, according to YourStory Research.

This compares to US$10.6 billion raised in the same period last year.

Q3 2025 recorded US$2.8 billion in funding, marking a 32% drop from Q3 2024, and a 12.5% drop from Q2 2025.

Late-stage startups attracted the most funding in Q3, ahead of early-stage and growth-stage companies.

Fintech led sector funding in the quarter, followed by direct-to-consumer and healthtech startups.

AI startups in India raised just US$100 million in Q3, contrasting with trends in developed markets.

Mumbai received the most VC funding in Q3, with Bengaluru and Delhi-NCR following.

Other cities such as Chennai, Hyderabad, and Pune have yet to see significant rises in VC investment.

🔗 Source: YourStory