Wed Apr 16 17:52:03 UTC 2025: ## Karnataka Tech Funding Plunges in Q1 2025
**Bengaluru, April 17, 2025** – A significant downturn in venture capital funding has hit Karnataka’s tech sector in the first quarter of 2025, according to a new report from Tracxn Technologies. Startups in the state raised just $633 million, a 23% drop from the previous quarter and a staggering 46% decrease year-on-year.
The report highlights a widespread pullback in venture activity, with no new unicorns emerging and no funding rounds exceeding $100 million. Bengaluru-based firms dominated funding, accounting for over 99% of the total.
While early-stage startups saw a slight increase in funding compared to the previous quarter (34% up to $294 million), this was still a 14% decrease compared to the same period last year. Seed-stage funding experienced a sharp decline, falling 14% quarter-on-quarter and a dramatic 55% year-on-year. Late-stage funding also plummeted, showing a 48% drop compared to Q4 2024 and a 60% drop year-on-year.
Despite the overall decline, enterprise applications, fintech, and retail sectors performed relatively well. The acquisition market, however, showed strength with 21 acquisitions – a 91% increase compared to the previous quarter and the same period last year. The largest acquisition was Amazon’s purchase of Axio for $150 million.
Accel, Blume Ventures, and Sequoia Capital were identified as the top investors in the Karnataka tech ecosystem during this period. No companies went public during Q1 2025.
First Piper 