According to the report, Indian startups secured US$3.1 billion in funding during Q1 2025, which is consistent with the prior quarter. In that same timeframe, 23 new funds were initiated, amassing a total of more than US$3.2 billion.

The fintech sector took the lead, raising US$1.18 billion and US$739 million across 33 deals involving six funds.

With five funds amounting to US$1.13 billion, the AI sector came next. Four dedicated funds were launched for both SaaS and consumer tech.

With 17 funds totaling US$1.5 billion initiated, investors concentrated on early-stage startups.

Debt funding became more popular, with Stride Ventures and Alteria Capital supporting 27 and 26 startups, respectively.

Noteworthy fund launches comprised Accel India’s fund worth US$650 million, Bessemer and Avendus each at US$350 million, Bharat Value Fund at US$289 million, and Trifecta Capital at US$230 million.

Interest in deeptech sectors such as robotics and aerospace was limited, with only three targeted funds available.