India secures 3rd spot in global startup ecosystem; Delhi surpasses Bengaluru in funding

India has emerged as the world’s third-largest startup ecosystem, trailing only the United States and the United Kingdom, according to Tracxn's latest report. The country’s startup sector continued to attract significant investments, securing $2.5 billion in funding in the first quarter of 2025.

Also read: With Bengaluru as the top city, India ranks second globally in women-led startup funding

A notable shift in India’s startup landscape saw Delhi overtaking Bengaluru in total funding during the quarter. While Bengaluru registered a higher number of deals, Delhi’s lead was largely attributed to successful IPO exits. Tech firms based in the national capital contributed to nearly 40% of total funding secured by startups across the country, while Bengaluru accounted for 21.64%.

The report highlighted that late-stage funding witnessed a surge, whereas early-stage investments saw a decline. This trend has been linked to a robust pipeline of IPO-ready companies, following a strong public offering market in 2024. Several venture-backed firms successfully went public last year, paving the way for more mature companies to enter the stock market.

Quick commerce sector saw rapid expansion with the growth of Blinkit, Zepto, and Swiggy Instamart. Additionally, mergers and acquisitions in the startup ecosystem saw a sharp rise, with 38 deals recorded in the first quarter—a 41% increase compared to the previous year.