Tracxn, a private market intelligence platform, has released its “EV in India Annual Funding Report – 2025,” outlining how capital is flowing into the country’s electric mobility ecosystem.
The report maps total funding, activity across stages, city-wise trends and the evolving maturity of India’s EV startup landscape.
Funding Growth and Deal Activity
According to the report, India’s EV sector has raised USD 1.4 billion in 2025 year-to-date (YTD), up 27 percent from the USD 1.1 billion recorded in 2024.
This larger capital inflow has come despite a sharp fall in the number of deals, with only 65 funding rounds so far in 2025 compared to 135 rounds in 2024. Tracxn notes that this points to greater investor discipline and more selective capital deployment.
EV Manufacturers accounted for the bulk of the funding, drawing in USD 1.2 billion. On the geographic front, Delhi topped the city rankings by a wide margin, with startups based in the capital raising USD 1.1 billion in total.
Shift Toward Late-Stage, Scale-Ready Startups
The report highlights a decisive shift toward mature, scale-ready companies. Late-Stage Funding more than doubled, rising 105 percent year-on-year from USD 536 million in 2024 to USD 1.1 billion in 2025 YTD.
Tracxn identifies this as an evidence of increasing confidence in selective, performance-driven EV businesses and a sign of sectoral maturity.
In contrast, early-stage capital has pulled back. Early-stage funding fell 49.3 percent year-on-year, dropping from USD 446 million in 2024 to USD 226 million in 2025 YTD.
Seed-stage funding also declined sharply to USD 61.2 million across 32 rounds in 2025 YTD, compared with USD 129 million over 77 rounds in 2024. This indicates a more cautious environment for younger startups.
Investor Confidence and Sector Maturity
Commenting on the findings, Neha Singh, Co-Founder of Tracxn, said the data reflects a pivotal moment for India’s EV ecosystem.
“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,” she added.
City-Wise Funding Trends
Funding has remained concentrated in leading startup hubs. Delhi emerged as the most funded city in 2025 YTD with USD 1.1 billion. Pune ranked second with USD 120 million, while Bengaluru secured USD 105 million. The distribution underscores how a handful of cities continue to dominate EV startup financing.
Investor Base, Acquisitions and IPOs
The overall investor base has narrowed. The number of investors participating in the EV sector declined from 150 in 2024 to 70 in 2025 YTD. First-time investors also dropped, from 63 in 2024 to just 32 as of November 2025 YTD, underlining growing reliance on existing backers.
M&A activity has picked up modestly. Acquisitions rose to three deals in 2025 YTD, compared to one in 2024. Notable transactions include the acquisition of Astro Motors by Remsons and the purchase of Grinntech Motors & Services by Yuma Energy.
Public market activity has remained steady. The sector recorded four IPOs in 2025 YTD, matching the number in 2024. Ather Energy’s USD 1.4 billion IPO in May 2025 was the largest listing during this period.
