Deeptech funding ticks up as startups move beyond labs in 2025

India’s deeptech sector saw a marginal increase in funding in 2025, with capital increasingly flowing into startups that have moved beyond proof-of-concept and laboratory-stage validation. Deeptech startups have raised $1.55 billion across 264 deals since the start of the year, slightly higher than the $1.4 billion raised in 2024, according to data accessed from Tracxn.

Venture capitalists say deeptech funding in India will remain in the $1-1.5 billion range over the next two years, before picking up in 2027-28, driven by policy support, the launch of the Research Development Incentive fund and a stronger pipeline of startups beginning to reach maturity.

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