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The year 2025 has not started on a positive note from a venture funding perspective into Indian startups, as the total capital raised came in at just double digits. However, this also follows expected lines, as the year usually tends to begin with a slow start.

The total funding for the first week of January came in $14.4 million from six transactions. In contrast, the comparable previous week saw total funds raised at $47 million.

This low amount of funding for the first week of January was largely due to the long holiday season of December. During the week, there were also very few deals.

However, this low funding amount does not present a pessimistic view for the Indian startup ecosystem in 2025. The total VC funding raised by Indian startups in 2024 is estimated to have grown by over 20% when compared to 2023. This actually shows that the sector has come out of the grip of the funding winter.

In addition, the year 2024 saw 13 initial public offerings from the startup ecosystem, and this number is only expected to only rise this year. This is an important development as investors can now see real exit options, which was not necessarily the case a couple of years back.

Also, it is expected that many more venture capital firms will raise fresh funds this year. The start has been good with the leading venture capital firm – Accel announcing the closure of its seventh India fund by raising $650 million.

The start has been tepid for the Indian startup ecosystem but the expectations are running high.