New Delhi, April 1 (IANS) India’s venture capital ecosystem raised roughly $16 billion in 2025 and saw deal activity grow about 18 per cent year‑on‑year, with transactions exceeding 1,300 across stages, a report said on Wednesday.

The report from Bain & Company said growth was broad‑based, driven by strong activity in sub‑$50 million deals while the upper end also gained momentum with scaled transactions above $250 million doubling to eight.

Fintech deal value rebounded about 2.2 times year‑on‑year while software or SaaS funding grew roughly 1.5 times, the report added.

Fund‑raising by VC and growth funds doubled to around $5.4 billion, led by a surge in $100 million‑plus vehicles.

Investors focused on companies demonstrating strong unit economics and clearer monetisation pathways, reflecting a market that is increasingly rewarding business quality overgrowth at any cost, the report noted.

IPO-led exits rose 30 per cent over 2024, and strategic exits exceeded $1 billion in value.

Amidst global macroeconomic headwinds, geopolitical uncertainty, and ongoing technological disruptions, this growth was underpinned by improving exit visibility, stabilising valuations, and stronger investor focus on sustainable, capital-efficient growth models.

Public market exits accounted for over 65 per cent of total exit value, driven by a rise in large IPOs. Consumer technology and fintech together anchored the exit landscape, contributing more than 60 per cent of total exit value.

“India’s long‑term venture opportunity is anchored in powerful structural drivers—rapid digital adoption, expanding domestic capital markets, policy‑led levers, and a deep technology talent pool,” said Prabhav Kashyap, Partner at Bain & Company.

IVCA President Rajat Tandon said that the sharp rise in fundraising, including thematic capital in areas such as deeptech and AI, reflects long-term conviction in India’s innovation economy, with capital increasingly aligned to scalable models, governance, and disciplined value creation.

–IANS

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