Delhi NCR-based startups cumulatively raised $2.2 Bn across 224 deals in 2025

The funding raised by Delhi NCR startups declined 4% YoY from $2.3 Bn raised across 252 deals in 2024

The annual funding in the city declined at a 10% CAGR between 2015 to 2025

Delhi NCR continued to be one of the leading startup hubs of India in 2025, with investors continuing to back startups based in the region.

Delhi NCR-based startups cumulatively raised $2.2 Bn across 224 deals last year, as per Inc42’s ‘Annual Indian Startup Trends Report, 2025’. While this amount was about 47% lower than the $4.5 Bn raised by startups based in India’s top startup hub, Bengaluru, it was about 10% higher than the $2 Bn raised by Mumbai-based startups across 146 deals over in 2025.

Last year, Delhi NCR-based startups like Innovaccer and Spinny raised mega rounds, while the likes of Oxyzo, Euler Motors, Safe Security and Gupshup saw large-ticket rounds.

While most of the large-ticket fundraises took place for established names, Raphe mPhibr became India’s first soonicorn defence tech startup last year after raising $100 Mn from General Catalyst at a $900 Mn valuation.

Besides, it must be noted that while Delhi NCR trails Bengaluru in terms of overall funding trends, it continues to be home to the highest number of listed new-age tech companies.

At the end of December 2025, Delhi NCR was home to 23 listed new-age tech companies compared to Bengaluru’s 13 and Mumbai’s eight. Last year, Delhi NCR-based companies like PhysicsWallah (Noida), Pine Labs (Noida), Lenskart (Delhi), and Urban Company (Gurugram) went public. Besides, online travel aggregator (OTA) Yatra, which was earlier based in Mumbai, shifted its headquarters to Delhi last year.

However, it is also pertinent to note that Delhi NCR lags Bengaluru in terms of the number of unicorns, soonicorns and minicorns.

Why Delhi NCR Continues To Attract Startup Capital?

So, what is powering investor affinity towards Delhi NCR startups? Here are a few reasons:

Proximity To Policymakers & Regulators

Delhi NCR’s proximity to the Union government and public-sector buyers gives startups an edge in navigating policy engagement, pilots and large contracts.

Large, Affluent Consumer Market

The region is one of India’s biggest consumption hubs, with high disposable incomes and rapid urbanisation. This makes it a natural testbed for D2C, edtech, foodtech, mobility, and proptech startups, allowing faster validation before national scale-up.

Deep Talent Pool

The region draws from premier institutions such as IIT Delhi, IIM Lucknow’s satellite campus in Noida, FMS, and other educational institutions, alongside a steady inflow of professionals from PSUs, MNCs, consulting firms and media. This depth supports both technology and go-to-market leadership hiring.

Strong Founder-Investor Network

Gurugram and Noida host a dense cluster of VCs, PE funds, family offices and corporate venture arms. This concentration lowers fundraising friction and enables faster follow-on rounds.

Infrastructure & Connectivity

Road, metro and railway connectivity, along with proximity to industrial clusters in Haryana, Uttar Pradesh, and Rajasthan, supports startups in manufacturing-linked and supply-chain-heavy sectors.

While all of these factors play in the hub’s favour, it must be noted that capital infusion in the ecosystem has been declining steadily over the past decade or so.

One of the reasons behind the decline in funding was the emergence of other cities as top startup hubs. While startup funding in Mumbai grew at a 14% CAGR during 2015-2025, Bengaluru-based startups saw a 6% rise in annual funding during the decade.

Besides the top three startup hubs, a number of entrepreneurs from tier II, III cities and beyond have also been raising funding. Emerging startup hubs like Hyderabad, Pune and Jaipur are poised to become the next major epicentres of India’s startup movement. According to Inc42’s 2025 investor survey, 45% of the respondents identified Hyderabad as the next major epicentre of India’s startup ecosystem, followed by Pune (20%) and Jaipur (10%), driven largely by the availability and growing migration of tech talent in these cities.

(Edited by: Vinaykumar Rai)