India's venture capital funding jumps 70% in January, outpaces China

India’s venture capital (VC) funding surged 69.7 per cent year-on-year (Y-o-Y) to $883.2 million in January 2025 from $520.5 million, driven by a sharp rise in deal volume, according to data from GlobalData. The number of VC deals also increased by 40.9 per cent to 131 from 93 in the same month last year.

 

“This growth trajectory indicates that Indian startups are not only attracting a greater number of VC deals but are also securing larger amounts of capital, reflecting improved investor confidence in the market,” said Aurojyoti Bose, lead analyst at GlobalData. “India continues to remain among the top five markets globally for VC funding activity, both in terms of deal volume and value,” he added.

 

Notable VC funding deals announced in India during the first month of the year include fundraising by building materials platform Infra.Market at around $121 million, $109.4 million funding in Neuberg Diagnostics, a diagnostic service provider, and $60 million fundraising by Leap Finance, an education financing company.

 

According to an analysis by GlobalData, India accounted for 9.9 per cent of all VC deals announced globally during the month, while its share in terms of deal value stood at 3.6 per cent.

 

“When compared to some major markets, India’s performance stands out. Particularly in the case of China, the VC deal volume dropped by 31.9 per cent, and its deal value remained relatively flat,” said Bose, adding that India’s performance stood out, highlighting the shifting dynamics in Asia’s startup ecosystem.