Sunday, December 21, 2025 | 07:28 PM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch

India's VC funding surges 40% in early 2025, defying global slowdown

Deal volume also increased 11 per cent during the same period, underscoring growing investor confidence in the country's innovation-driven startup ecosystem

Fintechs in the country have grown in the last decade, both in the number of entities and scale. The key growth sectors have been payments, credit, insurance and wealth management, fuelled by angel investors, venture capital (VC) and private equity.

With the momentum likely to persist, India’s startup economy is solidifying its position as a global innovation hub. Representative Picture

Jaden Mathew Paul Mumbai

Listen to This Article

India’s venture capital (VC) funding is off to a strong start in 2025, with investment value surging nearly 40 per cent year-on-year (Y-o-Y) in January and February, significantly outpacing global trends, according to a GlobalData report.
Deal volume also rose 11 per cent over the same period, underscoring growing investor confidence in the country’s “innovation-driven” startup ecosystem.
 
The jump in India’s VC activity comes as global deal volume contracted by nearly 9 per cent Y-o-Y, while global funding value grew at a comparatively modest 17 per cent.
 
India’s resilience has further cemented its status as one of the top five VC markets worldwide, accounting for roughly 9 per cent of total deals and over 4 per cent of global funding value in early 2025, according to the report.
   
“This growth reflects a thriving startup environment, where innovative ideas are increasingly attracting the attention of VC firms,” said Aurojyoti Bose, Lead Analyst at GlobalData.
 
“This substantial rise in value not only highlights the growing confidence of investors but also the increase in average deal size,” he added.
 
With the momentum likely to persist, India’s startup economy is further solidifying its position as a global innovation hub.
 
“India’s growth trajectory underscores its unique position as a hub for innovation. The significant growth in both VC deal volume and value indicates that investors are increasingly recognising the potential of Indian startups to deliver innovative solutions across various sectors. This trend is likely to continue as more entrepreneurs emerge with groundbreaking ideas,” said Bose. 
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 28 2025 | 2:57 PM IST

Explore News