India VC investments defy global slowdown, jump $16 bn in 2025
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New Delhi: Defying a broader global slowdown in private capital markets, venture capital (VC) investments in India surged to approximately $ 16 billion in 2025, marking a second consecutive year of expansion, according to a report.
The 'India Venture Capital Report 2026' by global consultancy firm Bain & Company and the Indian Venture and Alternate Capital Association (IVCA) revealed that overall deal activity accelerated by about 18 per cent year-on-year, with total transactions exceeding 1,300 across various stages.
The growth was achieved despite global macroeconomic headwinds, geopolitical tensions, and tighter liquidity, which constrained leverage-driven private capital flows globally. Growth remained broad-based, propelled by robust activity in deals valued below $ 50 million.
Larger transactions also picked up pace, with deals exceeding $ 250 million doubling in number from four to eight.
Investors continued to prioritise companies showing solid unit economics and clear routes to monetisation, reflecting a market shift towards valuing business quality over unchecked expansion. Consumer tech funding moderated, though it continued to demonstrate longer-term resilience, rising about 25 per cent year-on-year from 2023.
Verticalised quick commerce, which focuses on the quick delivery of specific product categories rather than a general assortment, emerged as a notable growth area. “After the reset in 2023, the Indian venture ecosystem has returned to a growth path—this time marked by clear signs of maturity... Barring the funding spikes of 2021 and 2022, India is now seeing its highest-ever funding levels, built on the right foundations of governance, capital efficiency, and exit visibility, positioning the ecosystem for sustainable, long-term growth,” said Aditya Muralidhar, Associate Partner at Bain & Company.
Technology-driven sectors played a central role in India’s funding recovery, with fintech emerging as the standout performer.
Fintech deal value rebounded by roughly 2.2 times year-on-year. While payments accounted for the largest share in value, wealthtech emerged as a major theme, witnessing a five-fold increase in deal value supported by rising digital adoption and household savings.
Software and SaaS (Software-as-a-Service) funding grew 1.5 times, driven by mature incumbents returning to the market and a new wave of Artificial Intelligence (AI) and Generative AI-native B2B companies gaining traction, particularly in the banking and healthcare sectors.
