India’s burgeoning fitness technology sector has experienced a significant downturn in funding, securing only $7 million in the year-to-date period of 2025. This sharp decline, reflecting a notable shift from previous peaks, signals a more cautious investment landscape following a pandemic-driven boom, according to Tracxn’s India Fitness Tech Wrap Report 2025.
Sharp Decline in Investment
The current year’s funding figures starkly contrast with the sector’s performance in recent years, highlighting a post-boom adjustment. The $7 million raised in 2025 year-to-date represents a considerable slowdown, with the sector having peaked at $387.9 million in 2021. Funding had already moderated to $48.3 million in 2024. Specifically, the Fitness & Wellness Tech sector saw an 70.45% drop in funding by July 2025 compared to the same period in 2024, receiving $11.1 million across 11 rounds versus $37.5 million across 24 rounds. Over the last decade (2016-2025 YTD), the sector has cumulatively raised $989 million across 203 equity rounds.
Historical Context of Funding
The sector’s growth trajectory saw annual funding rise from $24.2 million in 2016 to its record high in 2021. This peak was largely propelled by major deals, including Cult.fit’s landmark $180 million Series F round. The total funding for the Fitness & Wellness Tech sector in India over the last 10 years has exceeded $1.43 billion, with 2021 being the highest-funded year at over $406 million.
Key Players and Innovation
Despite the overall funding slowdown, the Indian fitness tech ecosystem remains active, comprising over 600 startups, with 96 having secured equity funding. Top-funded startups include Cult.fit, which leads with $666.6 million in total funding, followed by HealthifyMe with $145.3 million focusing on AI-driven nutrition, and Ultrahuman, which has raised $54.9 million for its biomarker-led health platform. FITTR, an app-based coaching and community-driven fitness platform, also secured $3 million in a Series A round in 2025 YTD as part of its $19.9 million total funding. Bengaluru continues to be the dominant hub for fitness tech funding, attracting $897.6 million, primarily driven by Cult.fit and HealthifyMe. Mumbai follows as the second-largest hub with $33.2 million. Venture Capital firms like Chiratae Ventures, Blume Ventures, and Kalaari Capital have been among the most active investors in the space. Neha Singh, Co-Founder of Tracxn, notes that the ecosystem is entering a phase of steady maturity, with startups innovating with AI-driven nutrition, connected equipment, wearables, and immersive platforms to create holistic health experiences.
Macroeconomic Headwinds and Investor Shift
The decline in fitness tech funding mirrors a broader “funding chill” across the Indian startup ecosystem in 2025. Several factors contribute to this more measured stance from investors.
Broader Startup Funding Trends
India’s overall startup funding dipped 22% to $3.8 billion between January and August 2025. In the first half of 2025, India’s startup funding fell 25%, though it still ranked third globally. This general slowdown is a continuation of a trend observed in 2024, where overall Indian tech startup funding in Q1 dropped 33% year-on-year to a seven-year low of $2 billion. The decrease in funding extends across all stages of investment, from seed to late-stage rounds., This shift has led to a focus on smaller funding rounds, with deals between $20 million and $30 million becoming more common, driven by domestic investors.
The Pursuit of Profitability
Investors are increasingly seeking “real profits, not just growth hype.” Many startups during the pandemic boom burned cash unsustainably, and valuations soared too quickly. With rising global interest rates making cheap money scarce, investors are now adopting a more cautious approach, prioritizing businesses with sustainable models and clear paths to profitability over rapid growth at any cost. This has led to a shift in investment strategies from spreading funds across numerous startups to fewer, larger deals aimed at securing gains in an uncertain market. Sectors showing resilience and scalability, such as Climate Tech, AgriTech, HealthTech, SaaS, and DeepTech, are still attracting considerable capital.
Outlook for India’s Fitness Tech
While the current funding figures indicate a challenging period, the underlying demand for fitness and wellness solutions in India remains strong. The Indian fitness market, estimated at nearly $3 billion in 2020, was projected to cross $6 billion by 2023 and a significant $14 billion by 2027. The ecosystem’s focus on AI and digital innovations suggests an adaptation to investor demands for robust, technology-driven solutions.
The current slowdown may prompt Indian fitness tech startups to become leaner, smarter, and more disciplined in their operations, focusing on unit economics and sustainable scaling. While large global investors like SoftBank and Tiger Global have reduced their large India investments, domestic investors are increasingly participating in smaller to mid-sized deals. This recalibration could lead to a more mature and resilient fitness tech sector in India in the long run.
