Karnataka tops startup funding in H1 2025, Bengaluru secures $3.9 billion

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Chaitanyesh
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Karnataka tops startup funding in H1 2025, Bengaluru secures $3.9 billion
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  • Bengaluru raised $3.9 billion in H1 2025, contributing 40% of India’s startup funding
  • Priyank Kharge credits proactive policies and Karnataka’s innovation ecosystem
  • Sectors like deep tech, fintech, health tech, and ESDM are driving the growth

Karnataka has once again reaffirmed its leadership in India’s startup ecosystem. In the first half of 2025, Bengaluru attracted a remarkable $3.9 billion in startup funding, accounting for nearly 40% of India’s total deal value. The update was shared by Karnataka’s IT/BT Minister Priyank Kharge, who hailed it as a reflection of the state’s thriving innovation environment.


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“This isn’t just a number – it’s a testament to Karnataka’s vibrant innovation ecosystem, proactive government policies, and the entrepreneurial spirit that fuels our state,” Kharge said in a statement on social media.

The state continues to see rapid growth in sectors such as deep tech, fintech, health tech, and ESDM (Electronics System Design and Manufacturing), with Bengaluru emerging as a leading hub for innovation and investment. The government’s support through policy reforms, infrastructure development, and skill-building initiatives has further accelerated the momentum.

Karnataka is also fostering strong global collaborations and creating a talent-rich environment that appeals to investors and entrepreneurs from around the world. The minister reiterated the state’s commitment to strengthening this growth trajectory and positioning Karnataka as the global innovation capital.

The strong H1 funding performance underscores Bengaluru’s pivotal role in shaping India’s digital economy and reaffirms its status as the startup capital of the country.

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