Funding volume rises but deals activity declines sharply
Number of investors reduce from 150 in 2024 to 70 this year
Delhi-based EV startups receive highest funding at $1.1 bn
India’s electric vehicle startup ecosystem reported a 27% surge in funding in 2025 compared to a year earlier. Over $1.4 billion was raised by electric vehicle start-ups compared to $1.1 billion in 2024, market intelligence firm Tracxn said in its EV in India Annual Funding Report – 2025.
Despite the rise in funding amount, the number of funding rounds decreased sharply to 65 in 2025 from 139 in 2024. The funding was largely concentrated towards late-stage start-ups as investors shied away from early-stage companies. The top funding round was Erisha E Mobility’s $1.0 billion Series D in March 2025.
1 December 2025
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Late-stage funding surged by 105% in 2025 year on year, rising from $536 million in 2024 to $1.1 billion year to date (YTD). This reflected renewed confidence in scale-ready, selective, and mature start-ups, Tracxn said in a statement. “This indicates a transition towards performance-led capital deployment with sector maturity,” it said.
Early-stage funding experienced a sharp contraction, dropping 49.3% year on year, from $446 million in 2024 to $226 million in 2025 YTD. Seed-stage funding also fell to $61.2 million across 32 rounds in 2025 YTD, down from $129 million across 77 rounds in 2024, reflecting reduced early-stage capital flow.
“The strong surge in late-stage capital, driven by a billion-dollar round supporting manufacturing and charging infrastructure, signifies India’s EV ecosystem has moved beyond early experimentation to embrace a phase of measurable, scaled maturity. It’s a clear signal that global and domestic investors now see EVs not just as a climate bet, but as a commercially viable, long-horizon opportunity,” Tracxn co-founder Neha Singh said in a statement.
Overall funding was dominated by electric vehicle manufacturers, which raised $1.2 billion, with Delhi leading the city rankings with $1.1 billion in total funding.
According to Tracxn, the total number of investors declined from 150 in 2024 to 70 in 2025 YTD, while first-time investors dropped from 63 in 2024 to just 32 as of November 2025 YTD. This highlights a growing reliance on existing investors, Tracxn said. The EV sector recorded four IPOs in 2025 YTD, matching the number in 2024, with Ather Energy’s $1.4 billion IPO in May 2025 being the largest.
