(MENAFN- KNN India) New Delhi, Oct 24 (KNN) India's e-commerce sector continues to see rapid expansion, but funding remains heavily concentrated in a few metropolitan hubs.

According to data from Tracxn, business-to-consumer (B2C) e-commerce startups have raised around $1.3 billion in 2025 so far, across more than 2,700 funding rounds.

However, despite the growing number of new ventures across the country, a large share of this capital is still flowing to established cities like Bengaluru, Delhi-NCR, and Mumbai.

Bengaluru leads India's e-commerce funding landscape, with cumulative investments worth $33.8 billion, reflecting its strong ecosystem of investors, accelerators, and tech talent.

The Delhi-NCR region follows with $16.7 billion, while Mumbai has attracted about $6.5 billion to date.

This dominance underscores how India's top metros continue to be magnets for venture capital and private equity funding, even as smaller cities witness an increasing number of startups entering the market.

Industry experts say investors prefer these established ecosystems due to better infrastructure, availability of skilled professionals, and proven business networks.

However, this concentration also highlights a key challenge - limited access to funding for startups based in tier-2 and tier-3 cities.

Many promising ventures outside major hubs struggle to attract early-stage capital, often relying on bootstrapping or local investors.

Analysts believe that for India's e-commerce landscape to mature equitably, investors need to diversify their focus beyond metropolitan cities.

With increasing internet penetration and growing consumer bases in smaller towns, these regions hold immense potential for future growth and innovation.

(KNN Bureau)

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