Indian startups secured a total of $1.65 billion (approximately Rs 14,418 crore) in funding at a median valuation of $83.2 million in February 2025, according to data from Traxcn. The latest figures mark a significant monthly increase of 19.5% from the $1.38 billion raised in January 2025, demonstrating renewed investor interest and market confidence.
However, on a year-on-year basis, the total amount raised fell from the $2.06 billion secured in February 2024, reflecting the broader funding slowdown that has persisted in the startup ecosystem over the past year.
Cumulative FY25 Funding Reaches $25.4 Billion
With the February numbers added, the total funding raised in the ongoing financial year (April 2024 – February 2025) reached $25.4 billion, spread across 2,200 funding rounds. While this indicates a steady flow of capital, the overall startup funding landscape remains cautious amid global economic uncertainties and tighter financial conditions.
Bengaluru and Mumbai Remain Startup Hotspots
Bengaluru, India’s leading startup hub, continued to dominate the funding charts, securing $353 million in investments. The median round size in the city stood at $2 million, highlighting a steady flow of early- and mid-stage investments.
Mumbai-based startups collectively raised $102 million, but with a higher median round size of $5 million, indicating stronger participation from growth-stage investors and late-stage funding rounds.
Major Funding Deals in February 2025
Several high-profile deals stood out during the month. Fintech firm Oxyzo emerged as the top fundraiser, securing $1 billion in conventional debt, marking one of the largest funding rounds in the fintech sector this year. Oxyzo’s ability to raise substantial debt financing reflects the growing demand for credit-focused fintech solutions in the Indian market.
Another notable funding round came from online B2B platform Udaan, which raised $75 million in a Series G equity funding round led by M&G Plc. The platform continues to expand its reach in India’s B2B e-commerce space, attracting sustained investor confidence.
Other significant fundraises included:
- SpotDraft, a legal-tech startup, secured an undisclosed amount to strengthen its contract automation solutions.
- Cashfree Payments, a digital payments company, raised capital to expand its suite of fintech offerings.
- Zeta, a banking technology platform, continued to attract funding for its cloud-native banking solutions.
- Geniemode, a global B2B sourcing platform, secured funding to scale its operations further.
The median funding round size in February 2025 stood at $1.92 million, consistent with previous months, indicating steady investor appetite for early-stage investments.
Notable Business Acquisitions
The second month of 2025 also witnessed several strategic acquisitions, as established players sought to expand their portfolios and enhance their market positioning:
- Head Digital Works acquired Deltatech Gaming, the parent company of Adda52, for Rs 491 crore, marking a major consolidation move in the online gaming sector.
- Perfios, a Bengaluru-based SaaS company, acquired Clari5, a fraud detection platform, to strengthen its risk management and fraud prevention capabilities.
- Motilal Oswal Alternate Investment Advisors (MO Alts) acquired a majority stake in Megafine Pharma for Rs 460 crore, underscoring continued investor interest in the pharmaceutical sector.
These acquisitions highlight the growing trend of consolidation across various sectors, as companies look to expand their capabilities and enter new markets through strategic mergers and acquisitions.
IPO Activity Remains Strong with 16 Listings
The Indian stock market saw 16 initial public offerings (IPOs) in February 2025, with a median IPO market capitalization of $26.5 million. Some of the notable public listings during the month included:
- Hexaware (IT services and solutions provider)
- AJAX (a manufacturing and automation company)
- Ken India (a leading engineering solutions provider)
- Dr. Agarwal’s Eye Hospital (a specialized healthcare provider)
- Royal Arc (a leading welding and fabrication company)
The sustained IPO activity suggests that despite global economic challenges, Indian startups and mid-sized firms continue to find opportunities in the public markets.
Key Investors and Venture Capital Activity
Several prominent angel investors and venture capital firms remained active in the Indian startup ecosystem in February 2025.
Angel Investors Leading the Chart:
- Ritesh Agarwal (OYO Founder)
- Anupam Mittal (Shaadi.com Founder)
- Aman Gupta (boAt Co-founder)
- Peyush Bansal (Lenskart Founder)
These high-profile investors have continued to inject capital into promising startups, helping to nurture early-stage companies across various sectors.
VC Firms Leading the Fundraises:
- Blume Ventures
- Eximius Ventures
- Unicorn India Ventures
- Peak XV Partners (formerly Sequoia India)
- Accel
- Nexus Venture Partners
These firms played a crucial role in financing early- and growth-stage startups, ensuring a steady flow of venture capital into India’s entrepreneurial ecosystem.
Indian Startup Funding Trends: A Year-on-Year Comparison
The funding landscape in India has seen some fluctuations in recent years. In 2024, Indian startups raised a total of $30.4 billion, marking a 6.5% decline from the $32.5 billion raised in 2023. This downward trend was largely attributed to global macroeconomic conditions, tightening liquidity, and a more cautious approach from investors.
Despite these challenges, the increasing monthly figures in 2025 suggest a potential rebound in startup funding, driven by renewed investor interest and a strong push toward innovation in sectors such as fintech, SaaS, healthtech, and e-commerce.
Outlook for the Rest of 2025
With the financial year 2025 drawing to a close, industry experts believe that the startup ecosystem will see a mixed bag of opportunities and challenges:
- Fintech and SaaS sectors are expected to dominate funding rounds, with continued interest in AI-driven solutions, embedded finance, and cloud-based software services.
- The IPO pipeline is expected to remain active, with more startups looking at public markets as a viable exit strategy.
- M&A activity is likely to continue, as companies seek strategic acquisitions to expand their capabilities and consolidate market positions.
- Investor caution may persist, but well-performing startups with sustainable business models are expected to attract strong funding interest.
As Indian startups gear up for the final quarter of the fiscal year, the focus will remain on securing capital efficiently, scaling operations, and navigating the evolving economic landscape. The increasing monthly funding figures signal resilience, and the coming months will be crucial in determining whether the upward trajectory continues in the startup ecosystem.