India, Dec. 31 -- By the end of 2025, India's tech startup ecosystem was operating in a far tighter capital environment. Total funding closed at $11 Bn, well below mid-year projections of $14-15 Bn.

This played out despite a broadly supportive domestic backdrop. Global uncertainties, driven by geopolitical tensions, tariff concerns and an unclear interest-rate trajectory, however, continued to shape the investor behaviour. As a result, capital was deployed into fewer, stronger companies, with longer diligence cycles and tighter underwriting standards.

At the same time, 2025 marked a shift from a prolonged slowdown to a more balanced, cautious rebound. Investments and exits began to move in tandem, offering investors clearer capital-retu...