India sees significant surge in PE-VC investments for startups in Jan-Feb

IANS March 3, 2025 322 views

India's startup ecosystem is experiencing a remarkable investment boom in early 2025. Private equity and venture capital investments have dramatically increased, reaching nearly $1.1 billion in just two months. The surge reflects growing investor confidence in mature startups and companies seeking growth capital. This trend positions India among the top five global markets for venture capital activity, showcasing the country's robust and evolving entrepreneurial landscape.

"India startups are attracting more VC deals and securing larger capital" - Aurojyoti Bose, GlobalData
India sees significant surge in PE-VC investments for startups in Jan-Feb
New Delhi, March 3: The Growth-PE stage companies in India have witnessed private equity-venture capital (PE-VC) investments reaching nearly $1.1 billion in the first two months this year, according to a new report.

Key Points

1

- PE-VC investments hit $1.1 billion in Jan-Feb, up from $594 million last year

2

Mature startups attracting significant growth capital

3

VC funding surged 69.7% year-on-year to $883.2 million

4

Deal volume increased 40.9% from 93 to 131 deals

This is a stupendous growth against $594 million during the same period last year (CY2024), showed data by research firm Venture Intelligence.

The PE investments exclude those from the real estate sector.

According to the report, there has been a pick up in PE-VC investments in "mature startups and companies floated by larger groups that have chosen to tap PE-VC investors for growth capital".

The Growth-PE segment comprises 'Seed to Series D' investments above $20 million into companies.

According to another report, the venture capital (VC) funding landscape for startups in India surged by 69.7 per cent (year-on-year) to $883.2 million (by value) in January.

The deal volume for startups also rose by 40.9 per cent from 93 in January 2024 to 131 this January, revealed GlobalData, a leading data and analytics company.

An analysis further revealed that India accounted for 9.9 per cent share of the total number of VC deals announced globally during January 2025, while its share in terms of value stood at 3.6 per cent.

This growth trajectory indicates that India 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.

Moreover, India continues to remain among the top five markets globally for VC funding activity both in terms of deal volume and value.

Venture capital activity in India from January to November 2024 has surged to US$ 16.77 billion across 888 deals, reflecting a robust 14.1 per cent increase in value and a 21.8 per cent rise in deal count compared to the same period in 2023, according to figures gathered by the IBEF.

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