Karnataka Tech Funding Mixed in H1 2025: Fintech Soars, Late-Stage Drops
The first half of 2025 saw a significant shift in funding trends for tech companies in Karnataka. While overall funding increased, late-stage and seed-stage investments saw notable declines.
Fintech companies led the way with a 255% increase in funding to $701 million compared to the second half of 2024. This was also a 57% increase from the same period last year. Enterprise applications saw a modest 1% increase to $619 million. Retail companies secured $542 million, up 27% from the previous half-year.
Late-stage funding, however, saw a significant drop of 44% to $930 million compared to the second half of 2024, and a 56% decrease from the first half of 2024. Seed-stage funding also decreased by 39% to $141 million compared to the second half of 2024, and by 41% from a year earlier.
Karnataka-based companies raised a total of $1.7 billion, a 30% decline from the second half of 2024 and a 44% drop from the first half of 2024. Despite this, two new unicorns emerged during this period, with Groww raising $202 million and Jumbotail raising $120 million.
Tech firms in Karnataka recorded 26 acquisitions, a 4% drop from the previous half-year but a 24% increase from the first half of 2024.
The first half of 2025 saw a mixed bag of results for tech companies in Karnataka. While overall funding increased, late-stage and seed-stage investments saw significant declines. Despite this, two new unicorns emerged, indicating continued investor interest in the region.
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