Maharashtra Tech Funding Hits $2B in 9M 2025, Early-Stage Growth Up

Maharashtra’s tech sector demonstrated stable funding performance in the first nine months of 2025, raising $2.0 billion, an 11% increase compared to $1.8 billion in the same period last year. The report, released by Tracxn, highlights a more pronounced shift in early-stage investments, with retail, real estate & construction tech, and fintech emerging as the top-performing sectors.

Despite an overall dip from the $2.3 billion raised in 9M 2023, the state’s tech ecosystem remained resilient, driven by sector-specific growth and consistent deal flow. Notably, early-stage funding surged to $903 million, up 69% from $535 million in 9M 2024, reflecting a notable shift toward emerging startups. Meanwhile, late-stage funding dipped to $925 million, continuing the trend from the previous year’s decline in late-stage deal activity.

A Closer Look at Sectoral Growth and Early-Stage Momentum

The strong performance of sectors like retail, real estate & construction tech, and fintech has been pivotal in the overall funding landscape. Retail tech, for instance, saw an impressive 50% increase in funding to $633 million, compared to $421 million in 9M 2024. The Real Estate & Construction Tech sector also had a phenomenal year, recording a 444% rise in funding to $555 million, driven by increased demand for digitisation in construction and real estate management. On the other hand, FinTech remained a steady player with $477 million in funding, although it saw a slight decline of 11% compared to 9M 2024.

In terms of large-ticket deals, GreenLine raised $275 million in a Series A round, while Infra.Market secured $222 million in Series F funding. These transactions signal strong investor interest in construction and logistics tech, reinforcing sector-specific growth.

The Rise of Early-Stage Investment and New Unicorns

While late-stage funding remained subdued, the early-stage market witnessed a remarkable surge, reflecting the growing interest from investors in promising, younger startups. This is highlighted by the emergence of one new unicorn in 9M 2025 after a two-year dry spell, signalling renewed investor confidence in early-stage opportunities. The dynamic nature of the ecosystem is evidenced by a continued focus on seed and early-stage funding, with notable investors like Venture Catalysts, Antler, and Rainmatter leading the charge.

The 9M 2025 period also saw 7 IPOs, marking a significant 75% increase from 2024. This uptick is a positive sign for the future of public market activity in Maharashtra, especially as tech companies such as Seshaasai, Anand Rathi, and Jaro Education went public.

M&A Activity and Market Consolidation

Mergers and acquisitions (M&A) activity remained steady in Maharashtra’s tech ecosystem, with 24 acquisitions recorded in 9M 2025, matching the numbers from the previous year. However, the total value of these transactions has risen, exemplified by the $516 million acquisition of Magma General Insurance by the DS Group and Patanjali Ayurved. Another major acquisition was the purchase of Web Werks by Iron Mountain for $164 million, reflecting growing consolidation in the cloud storage and data management sectors.

Mumbai’s Continued Dominance as a Tech Hub

As the primary startup funding hub in the state, Mumbai continued to capture 65% of Maharashtra's total tech funding, maintaining its position as the region’s undisputed leader. Pune remained second, contributing 16% of the funding, while smaller cities and emerging innovation hubs within the state are expected to grow in prominence as the tech ecosystem diversifies.

Despite the mixed performance across stages, Maharashtra’s tech ecosystem is poised for further growth as early-stage investments continue to grow. Retail, FinTech, and Real Estate & Construction Tech are expected to remain the dominant sectors for funding, driven by increased digital transformation efforts and the evolving needs of Indian consumers.

The presence of strong venture capitalists and strategic investors across both early and late stages, along with the continuous dominance of Mumbai as a business and technology hub, positions Maharashtra as a key player in India’s startup and tech landscape.