Indian startup funding drops 18% YTD

Indian startups raised $8.6 billion across 926 deals from January to September 2025, down 18% YoY. Q3 funding fell 32% compared to 2024, with only September crossing the $1 billion mark, reflecting cautious investor sentiment. Does this slowdown indicate a more selective approach or broader market caution? Despite the dip, high-potential startups continue to attract attention, emphasizing the importance of strong business models, scalability, and sustainable growth in securing investment amid a tightening funding environment.