Tech start-ups raised $2.7 billion in 9M 2025, a 40% drop from $4.5 billion in 9M 2024 and 23% drop from $3.5 billion in 9M 2023, as per market intelligence firm Tracxn.
Fintech has emerged as the top-performing funded sector in Karnataka for the first nine months of 2025 (9M 2025). The sector has recorded $841 million in funding, an increase of 38 per cent from $608 million in 9M 2024.
The tech start-ups raised $2.7 billion in 9M 2025, a 40 per cent drop from $4.5 billion in 9M 2024 and 23 per cent drop from $3.5 billion in 9M 2023, as per market intelligence firm Tracxn.Meanwhile, the enterprise applications sector saw $830 million in 9M 2025, down by 19 per cent from $1 billion in 9M 2024, while the retail sector recorded $730 million in 9M 2025, a 43 per cent drop from $1.3 billion in 9M 2024.
The period also witnessed a noticeable slowdown in large-ticket rounds.
Tech sector
The tech sector saw two IPOs in 9M 2025, down by 67 per cent from six in 9M 2024. Ather Energy and BlueStone were the companies that went public during this period. Bengaluru-based tech firms accounted for nearly all of the funding raised by tech companies across Karnataka.
During this period, techcompanies in the state also posted 35 acquisitions, down by 5 per cent compared to 37 in the corresponding period last year. The highest-valued acquisition was Growwacquiring Fisdom for $150 million, followed by ICRA acquiring Fintellix for $26 million.
Funding across stages
Funding activity across stages in Karnataka showed steady movement in 9M 2025. While the seed-stage was down by 22 per cent at $287 million, early-stage investment showed strong progress, touching $1.1 billion, a 20 per cent increase compared to $914 million in 9M 2024. Late-stage funding totalled $1.3 billion, down by a 59 per cent.
Venture Catalysts, Antler and Rainmatteremerged as the most active investors at the seed stage, supporting early-stage companies across the state. At the early stage, Accel, Peak XV Partners and Elevation Capital played key roles in driving scale-up investments. At the mature end of the market, Sofina,Softbank Vision Fund and Mars Growth Capitalled late-stage investment activity in the Karnataka tech ecosystem during the period.
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Published on November 26, 2025