Karnataka tech ecosystem’s fundraising plummets to $1.7 billion in H1 2025; Bengaluru leads

Karnataka-based startups raised $1.7 billion in the first half of 2025 (H1 2025), according to a report by data intelligence platform Tracxn, with Bengaluru-based companies in the lead. The funding level is down 30% from the $2.4 billion raised in the second half of 2024 (H2 2024), and 44% lower than the $3 billion raised during the same period last year (H1 2024).

The report stated that the decline highlights slower investor activity across multiple sectors.

Top performing sectors

Despite the overall slowdown, fintech, enterprise applications, and…