Fintech tops funding charts in Karnataka despite 40% decline in technology investments: report

Tech startups raised $2.7 billion in the first nine months of 2025, down 40% from the $4.5 billion in the first nine months of 2024 and down 23% from the $3.5 billion in the first nine months of 2023, according to market research firm Tracxn.

The tech startups raised $2.7 billion in the first nine months of 2025, down 40 percent from the $4.5 billion in the first nine months of 2024 and down 23 percent from the $3.5 billion in the first nine months of 2023, according to market research firm Tracxn.Meanwhile, the enterprise applications sector saw $830 million in the first nine months of 2025, down 19 percent from $1 billion in the first nine months of 2024, while retail saw $730 million in the first nine months of 2025, down 43 percent from $1.3 billion in the first nine months of 2024.

This period also witnessed a noticeable slowdown in big-ticket rounds.

Technical sector

The technology sector saw two IPOs in the ninth month of 2025, down 67 percent from six in the ninth month of 2024. Ather Energy and BlueStone were the companies that went public during this period. Bengaluru-based tech companies accounted for almost all the funding raised by tech companies in Karnataka.

During this period, techcompanies in the state also recorded 35 acquisitions, down 5 percent from 37 in the corresponding period last year. The highest valued acquisition was Growwthe acquisition of Fisdom for $150 million, followed by ICRA acquiring Fintellix for $26 million.

Financing in phases

Financing activity in Karnataka showed steady movement in the first nine months of 2025. While seed funding fell 22 percent to $287 million, early-stage investments showed strong progress to nearly $1.1 billion, up 20 percent from $914 million in the ninth month of 2024. Late-stage financing totaled $1.3 billion, down 59 percent.

Venture Catalysts, Antler and Rainmatteremerged as the most active early-stage investors, supporting early-stage companies across the state. In the early stages, Accel, Peak XV Partners and Elevation Capital played a key role in driving scale-up investments. At the mature end of the market, Sofina,Softbank Vision Fund and Mars Growth Capitalled the late-stage investment activities in Karnataka’s technology ecosystem during the period.

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Published on November 26, 2025