New Delhi, April 9 : Tech funding in India stood at $11.7 billion in FY 2025-26, an increase of 20 per cent compared to $9.7 billion raised in FY2023-24 amid strong early-stage momentum and a surge in IPO activity, according to a new report.

As per Tracxn analysis, India ranked as the fourth-highest funded country globally during FY 2025-26, behind the United States, the United Kingdom and China, while staying ahead of Germany and France.

It further stated that funding trends showed strong traction across key stages.

Early-stage funding rose sharply to $4.8 billion, a 33 per cent increase from $3.6 billion in FY 2024-25 and a 37 per cent rise from $3.5 billion in FY 2023-24, while seed-stage startups raised $1.3 billion.

On the other hand, late-stage startups raised $5.6 billion in FY 2025-26, significantly higher than $4.7 billion raised in FY 2023-24.

"While overall funding saw moderation, the strong momentum in early-stage investments highlights continued investor confidence," said Neha Singh, Co-founder of Tracxn.

The report also noted that India saw 13 funding rounds exceeding $100 million in FY 2025-26.

Sector-wise, enterprise applications led funding with $3.6 billion, a 23 per cent increase compared to FY 2023-24.

Meanwhile, fintech secured $2.4 billion, rising 27 per cent compared to FY 2023-24, while retail funding stood at $2.4 billion.

On the exits front, Indiaâ??s tech ecosystem recorded 129 acquisitions during FY 2025-26.

In addition, IPO activity surged during the year, with 47 public listings recorded, a 52 per cent increase from FY 2024-25 and a 47 per cent rise compared to FY 2023-24.

The report also highlighted that six unicorns were created during FY 2025-26, a 50 per cent increase compared to previous years.

Geographically, Bengaluru retained its position as the top startup hub, accounting for 33 per cent of total funding, followed by Mumbai with a 21 per cent share.

/IANS