PE-VC Investments for Startups in India

PE-VC Investments for Startups in India Have Increased Significantly in January and February

Private equity-venture capital (PE-VC) investments in India’s startup ecosystem have surged dramatically in the first two months of 2025, indicating a strong appetite for growth capital and heightened investor confidence. During this time, PE-VC investments in Growth-PE stage companies totaled about $1.1 billion, according to a recent analysis by research firm Venture Intelligence. This represents a notable increase above the $594 million recorded during the same time period in the previous year (CY2024).

Important Factors Affecting PE-VC Investment Growth

The increase in funding for established startups and businesses floated by larger corporate groups looking for growth capital has been the main driver of the investment boom. Notably, significant capital has been drawn to the Growth-PE segment, which comprises “Seed to Series D” investments over $20 million.

Moreover, data from GlobalData, a top data and analytics firm, shows that venture capital (VC) funding in India increased by 69.7% year over year to $883.2 million in January alone. The number of deals for startups increased significantly as well, going from 93 in January 2024 to 131 in January 2025, a 40.9% rise. This expansion demonstrates the growing interest of investors in India’s high-potential startups and companies.

India’s Increasing Presence in the Global Venture Capital Scene

In January 2025, 9.9% of all venture capital deals disclosed worldwide took place in India, with a 3.6% investment value share. This suggests that Indian entrepreneurs are securing larger funding sums in addition to a greater number of agreements, which further solidifies the nation’s rising importance in the global venture capital scene.

This development trajectory indicates increased investor trust in India’s startup ecosystem, according to Aurojyoti Bose, chief analyst at GlobalData. “India continues to be among the top five global markets for VC funding activity, both in terms of deal volume and investment value,” Bose stated.

Strong Growth in Venture Capital Investments

According to additional research conducted by the India Brand Equity Foundation (IBEF), venture capital activity is expected to grow significantly in 2024. Between January and November 2024, venture capital investments in India reached $16.77 billion through 888 deals, a 14.1% increase in value and a 21.8% increase in the number of deals when compared to the same period in 2023.

The Indian startup ecosystem is positioned for long-term growth with this ongoing momentum, drawing in more investors looking for high-return ventures. The rise in PE-VC investments highlights Indian entrepreneurs’ adaptability and capacity to grow and develop in a fast-paced business climate.