India's venture capital (VC) funding hits Rs. 30,205 crore (US$ 3.5 billion) led by fintech amid global slowdown: KPMG

India’s venture capital (VC) investment ecosystem showed resilience in Q2 2025, recording Rs. 30,205 crore (US$ 3.5 billion) in funding across 355 deals, up from Rs. 24,164 crore (US$ 2.8 billion) across 456 deals in the previous quarter, according to the latest Venture Pulse report by KPMG Private Enterprise. This uptick came despite a global slowdown in VC activity, highlighting India’s growing prominence in the regional startup ecosystem. Sectors such as fintech, health tech, and logistics drew strong investor interest, with notable transactions including Rs. 1,726 crore (US$ 200 million) raised by Groww and Rs. 1,484 crore (US$ 172 million) by IKF Finance. Fintech remained the standout sector, buoyed by the global success of similar initial public offering (IPO) in the United States (US), indicating strong long-term prospects for Indian startups eyeing listings or acquisitions.
The report also noted a significant contrast between India and the broader Asian VC landscape, where overall funding remained stagnant at Rs. 1,10,464 crore (US$ 12.8 billion), with deal volume plummeting to a decade-low 2,022. Meanwhile, global VC funding dropped to Rs. 8,72,062 crore (US$ 101.05 billion) in Q2 from Rs. 11,08,092 crore (US$ 128.4 billion) in Q1, largely due to the absence of a one-off transaction like OpenAI’s Rs. 3,45,200 crore (US$ 40 billion) raise earlier this year. However, the Americas led global VC investment, driven by megadeals in artificial intelligence (AI) and defence-tech, with the US accounting for Rs. 6,27,401 crore (US$ 72.7 billion) of the total. Europe remained steady at Rs. 1,25,998 crore (US$ 14.6 billion), focusing on larger late-stage deals. As investor attention pivots toward transformative sectors like AI and fintech, India’s expanding digital ecosystem continues to attract robust capital flows, reinforcing its innovation potential and strategic position in the global VC landscape.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.