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India’s VC funding landscape rebounded to $13.7 billion, 1.4 times the previous year, with 1270 deals, according to data from Bain & Company
India’s venture capital (VC) ecosystem has clocked a 14 per cent year-on-year (y-o-y) rise in deal volume and a 12 per cent uptick in deal value, according to GlobalData.
The country accounted for 9 per cent of global VC deals by volume and 4 per cent by value during the quarter, standing out against a backdrop of global volatility where markets like China, the US, and the UK saw mixed or negative trends.
Aurojyoti Bose, Lead Analyst at GlobalData, commented: “This increase is particularly noteworthy given the backdrop of a global VC market that has seen varying trends with several key markets experiencing setbacks either in terms of deal volume or value. While the global VC landscape has shown signs of volatility, particularly in markets like China, which has experienced a significant decline in both deal volume and value, India’s upward trajectory is a stark contrast. Moreover, other key markets such as the US and the UK also experienced decline in VC deal volume but growth in terms of value.”
The report suggests that India’s VC market remains resilient, fuelled by strong tech adoption, a young digital-first population, and a growing middle class. Government initiatives like Startup India have further bolstered the start-up ecosystem, making the country a hotspot for venture capital.
Consequently, global and domestic VC firms are launching new funds with early-stage VC Accel raising $650M for its eighth India-focused fund, while Silicon Valley-based Bessemer Venture Partners launched a $350M second fund. Domestic firms Cornerstone Ventures and Prime Venture Partners raised $200M and $100M respectively, with smaller funds of $30–50M closed by Eximius Ventures and SamVed VC.
India’s VC funding landscape rebounded to $13.7 billion, 1.4 times the previous year, with 1270 deals, according to data from Bain & Company. Small and medium ticket deals (<$50 million) accounted for 95 per cent of all deals with investors and founders shifting toward more conservative valuations.
(With inputs from businessline intern Rohan Das)
Published on May 1, 2025
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