Karnataka's tech ecosystem raised $3.8 billion funding in 2025, says Kharge

Karnataka's tech ecosystem raised $3.8 billion in 2025, driven by strong early-stage funding momentum, IT/BT minister Priyank Kharge said in a social media post.

"With early-stage deals leading funding activity and fintech emerging as a key contributor, the state continues to strengthen its position as a national hub for innovation and ecosystem-led growth," Kharge said on X.

The state's startup ecosystem was ranked the third best performer in 2026 after Gujarat and Goa, according to the Department for Promotion of Industry and Internal Trade (DPIIT).


As of 2025, Karnataka hosted more than 19,000 startups recognised by the DPIIT. The state has attracted more than 5,000 active tech investors, KDEM data shows.

Karnataka is also positioning itself as a major hub for artificial intelligence companies, including Anthropic.

Last October, Anthropic revealed that Bengaluru will serve as its second office in the Asia Pacific region after Tokyo. "This expansion will help us serve India's rapidly growing AI ecosystem," the company said in a statement.

The state's dominance in the deeptech sector further strengthens its position. According to the Economic Survey 2025-26, Karnataka accounts for 39% of the country's generative artificial intelligence (AI) startups.