Gulf sovereign wealth fund investments (SWF) in Indian startups fell sharply in 2025, even as broader economic ties continued to expand across energy, infrastructure, and manufacturing.

Gulf SWF investments in Indian startups totaled nearly USD 225 mn in 2025, down from USD 389.3 mn in 2024, according to data compiled by market intelligence firm Tracxn and shared exclusively with EnterpriseAM. Gulf SWF investments in the startup ecosystem peaked in 2021 at USD 6.32 bn. The number of disclosed India-focused GCC SWF deals fell to two in 2025, compared to 12 in 2021.

The pullback in Gulf allocations parallels India’s broader tech funding decline, which dropped to a five-year low in 2025. Indian tech startups raised roughly USD 11 bn in 2025, down from the highest recorded USD 38.9 bn in 2021, with the steepest drop being in late-stage funding.

“Historically, Gulf investors have had a limited presence in India’s startup ecosystem, preferring asset classes like real estate, infrastructure, energy, and large public/late-stage private investments,” Tracxn told EnterpriseAM. Early and growth-stage venture investing has not been a core focus due to longer horizons and less predictable exits.

Gulf capital typically entered the Indian startup market selectively, often via co-investments or later-stage participation with global funds. “Over time, as Gulf investors broaden their exposure to technology and innovation-led sectors, their participation in Indian startups may increase, but is likely to remain measured rather than widespread,” Tracxn told us.

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