The tech startups in Karnataka raised a total of $2.7 billion in the first nine months of calendar year 2025 (9M 2025), a 40% drop compared to the corresponding period in 2024, as per the Karnataka Tech Ecosystem Report for 9M 2025 released by market research firm Tracxn.

According to the report, the period witnessed a noticeable slowdown in large-ticket rounds, impacting overall capital flow into the ecosystem. Bengaluru-based tech firms contributed nearly all of the funding raised by tech companies across Karnataka.

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