Bengaluru reigns supreme in startup funding, ranks 14th globally in innovation

India's startup capital, Bengaluru has attracted the highest funding in the country during the first half of 2025, securing a astonishing $3.9 billion across 143 deals, according to a recent startup funding report. This accounts for nearly 40% of all startup investments raised in India between January and June.

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The Karnataka Department of IT and BT proudly announced this feat, posting on social media saying "Namma Bengaluru leads again! Karnataka continues to power the innovation economy of India." The city's dominance reinforces its position as a magnet for entrepreneurs and investors alike, outpacing Delhi-NCR, which secured $2.2 billion from 116 deals, and Mumbai, which followed with $1.3 billion from 80 deals.

The report noted that Tier-1 cities remained at the forefront, with Bengaluru, Delhi-NCR, and Mumbai together accounting for over half, 54% of total startup funding during the period. The surge in Bengaluru’s numbers is attributed largely to the city’s deep-rooted ecosystem in e-commerce, fintech, and SaaS sectors, as well as strong policy support from the state government.

On a national scale, Indian startups raised $5.7 billion in H1 2025, reflecting an 8% year-on-year growth. Notably, five new unicorns emerged during this period, signaling sustained investor confidence despite global economic uncertainty.

Bengaluru’s ascent wasn’t limited to domestic achievements. In the Global Startup Ecosystem Report (GSER) 2025, the city leaped from 21st to 14th place, surpassing global innovation hubs like Toronto, Amsterdam, and Seattle. It now stands shoulder to shoulder with cities such as Paris (12) and Philadelphia (13), a clear sign of its rising global stature.

With continued momentum, Bengaluru is well-positioned to become one of the world’s top 10 startup ecosystems in the near future.