Karnataka Funding Tanks 40% as Maharashtra Sees Modest Growth: What's Behind the Shift?

Overview

In the first nine months of 2025, Maharashtra's tech sector raised $2 billion, an 11% increase year-over-year, driven by strong early-stage funding and notable IPOs. Conversely, Karnataka experienced a sharp 40% decline in funding, securing $2.7 billion, with late-stage investments significantly cooling. This divergence highlights a shifting investor sentiment and a slowdown in large-ticket deals, particularly impacting Karnataka's startup ecosystem.