Delhi vs Bengaluru: India's national capital beats IT capital in startup funding by a higher margin

Delhi topped the list for startup funding in India, securing 40% of the total funding. Bengaluru was in second place. India's tech startups raised $2.5 billion in Q1 2025, a 13.64% rise from the previous quarter. Key funding rounds included Erisha...

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Bengaluru, India's IT capital and home to several start-ups, was ranked second and not first on getting start-up funding across India. The first position was clinched by India's national capital, Delhi, which accounted for 40% of total funding in India, according to Tracxn's Geo Quarterly India Tech Report.

In Q1 2025, India's tech startups raised $2.5B, marking a 13.64% increase from the previous quarter and an 8.7% rise from the same period last year, making it the third most-funded country globally ahead of Malta and Germany and behind the US and UK.

"While the funding environment remains dynamic, India’s startup ecosystem continues to demonstrate adaptability and growth. Key sectors like Auto Tech, Enterprise Applications, and Retail are attracting investor interest, and the rise in acquisitions signals a maturing market. Innovation and entrepreneurship remain at the core of this ecosystem, positioning India for long-term success," said Neha Singh, Co-Founder of Tracxn.


What is the city wise trend?


_- visual selection

City Funding
Delhi $1.0 billion
Bengaluru $541 million
Gurugram $193 million
Hyderabad $168 million
Mumbai $161 million

(Data from Tracxn's Geo Quarterly India Tech Report)

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India's ranks 3rd globally:

In Q1 2025, India's tech startups raised $2.5 billion, marking a 13.64% increase from the previous quarter and an 8.7% rise from the same period last year, making it the third most-funded country globally ahead of Malta and Germany and behind the US and UK, showed data from the report.

"Out of the $2.5 billion in funding, three startups Erisha E Mobility, Darwinbox and Infra Market received funding of over $100M each as compared to three such rounds in Q4 2024 and 2 in Q1 2024," said the report.

Top Funding Rounds in last 8 quarters

Company Founded (Year, City) Funding Amount Funding Round
Erisha E Mobility 2022, Delhi $1.0B Series D
Zepto 2020, Bengaluru $665M Series F
Flipkart 2007, Bengaluru $600M Series J
DMI Finance 2008, Delhi $400M Series E
Udaan 2016, Bengaluru $377M Series E
TI Clean Mobility 2022, Chennai $359M Series D
Zepto 2020, Bengaluru $350M Series G
Flipkart 2007, Bengaluru $350M Series J
Zepto 2020, Bengaluru $340M Series G
DMI Finance 2008, Delhi $334M Series E


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