According to People Matters, “Indian startups raise $9.1 billion as AI drives 91% of deeptech investments,” published on March 26, 2026. The report highlights how Indian startups raise $9.1 billion in funding during 2025 as artificial intelligence becomes a central driver of investment.
The funding represents a 23% increase compared with the previous year. Investors increasingly direct capital toward technology ventures that show strong potential for commercial products and scalable infrastructure. A Nasscom–Zinnov analysis, reported by The Hindu, shows that artificial intelligence now dominates deeptech investment. In fact, AI accounted for 91% of total deeptech funding in 2025.
India startup ecosystem growth gains momentum
The surge in funding reflects broader India startup ecosystem growth. Deeptech investment alone rose 37% during the year, reaching $2.3 billion. Investors now prefer companies that demonstrate clear product development paths and strong infrastructure readiness.
Rajesh Nambiar, president of Nasscom, said the ecosystem is entering a new phase. He explained that artificial intelligence is emerging as a central technology layer for India’s next innovation cycle.
This shift also shows how investors now focus on targeted investments instead of broad funding across sectors.
Early stage deals support Indian startups raise $9.1 billion
Early-stage investment continues to support the momentum behind Indian startups raise $9.1 billion in funding. Seed and early-stage deals accounted for 74% of total funding activity in 2025.
At the same time, consolidation increased across the startup landscape. More than 140 mergers and acquisitions took place during the year. This number nearly doubled compared with the previous year.Such activity indicates that startups now focus more on scale, integration, and operational efficiency.
AI investment shapes future of India startup ecosystem growth
The funding data also highlights changing investor priorities. Capital increasingly flows toward startups that demonstrate strong commercialization potential and access to skilled talent.
India currently hosts between 31,000 and 34,000 startups. However, the ecosystem now concentrates around established technology hubs and proven sectors.
The trend suggests that Indian startups raise $9.1 billion during a period when investors prioritize disciplined growth. As artificial intelligence continues to influence business models, India startup ecosystem growth will depend on how effectively startups transform innovation into market-ready products.
