Indian startups raised 4.8 billion dollars across 312 funding deals in Q1 2025, marking a 67% increase from Q1 2024 and signaling a decisive recovery in the Indian startup funding environment after two years of correction.
Funding by Stage
Seed/Pre-Seed: $420M across 187 deals (avg $2.2M) — AI startups accounted for 42% of seed deals.
Series A: $890M across 64 deals (avg $13.9M) — Median company had $1.5M ARR, up from $800K two years ago.
Series B/C: $1.7B across 38 deals (avg $44.7M) — Investors prioritizing unit economics over growth rate.
Late Stage/Pre-IPO: $1.79B across 23 deals (avg $77.8M) — Companies preparing for IPO.
Top Sectors
1. AI — $1.4B (29%): Sarvam AI $400M, Krutrim $200M led the category.
2. Fintech — $980M (20%): PhonePe $350M secondary, Razorpay $200M growth.
3. Climate Tech — $620M (13%): Fastest-growing by deal count, 120% increase YoY.
4. SaaS — $540M (11%): Developer tools and vertical SaaS led.
5. Healthcare — $380M (8%): Digital health and pharma AI growing.
Top 10 Deals
1. Sarvam AI — $400M
2. PhonePe — $350M
3. Ather Energy — $280M
4. Razorpay — $200M
5. Krutrim — $200M
6. Meesho — $180M
7. Zepto — $170M
8. Ola Electric — $150M
9. Lenskart — $140M
10. Groww — $120M
Investor Activity
Most active: Peak XV Partners (28 deals), Accel India (22), Lightspeed India (18). International investors Tiger Global, Coatue, General Atlantic returned to Indian dealmaking. Sovereign wealth funds from Abu Dhabi, Singapore, and Saudi Arabia participated in 15 deals totaling $1.2B.
2025 Outlook
On track for $18-20B total in 2025 — approaching the 2021 record of $24B but with healthier composition. 8-10 Indian startups expected to IPO in 2025, providing liquidity and validating the ecosystem for global capital markets.
