Karnataka startups raise $2.7 billion in 9M 2025: Tracxn

Karnataka-based startups raised $2.7 billion in the first nine months of 2025, according to a report by data intelligence platform Tracxn. Of the total funding, seed-stage investments stood at $287 million, early-stage funding amounted to $1.1 billion, and late-stage rounds accounted for $1.3 billion.

FinTech, Enterprise Applications, and Retail emerged as the top-performing sectors during the period. FinTech startups attracted $841 million, Enterprise Applications received $830 million, and Retail companies secured $730 million in funding.

Only two companies crossed the $100 million funding mark in 9M 2025—Groww, which raised $202 million in a Series F round, and Jumbotail, which secured $120 million in its Series D round.

Karnataka’s tech ecosystem saw three IPOs during the period—a 67% decline from six in 9M 2024. Ather Energy, BlueStone, and Groww went public this year.

The state recorded 35 acquisitions, slightly lower than the 37 deals in the same period last year. Major acquisitions included Groww buying Fisdom for $150 million and ICRA acquiring Fintellix for $26 million.

Active investors in the state during 9M 2025 included Venture Catalysts, Antler, and Rainmatter at the seed stage. At the early stage, Accel, Peak XV Partners, and Elevation Capital led funding activity. In the late-stage segment, Sofina, SoftBank Vision Fund, and Mars Growth Capital were the most active investors.