October 11, 2025: The flow of venture capital (VC) funding into Indian startups has remained consistent in October, despite a broader cautious approach in the market. This week’s $120 million deal provided a significant boost, helping to retain the momentum, although overall investment activity has remained relatively subdued.
In the second week of October, Indian startups secured a total of $264 million across 32 deals, almost matching the $265 million raised in the previous week. The stability in funding comes at a time when investor sentiment remains subdued, reflecting a broader slowdown in the venture capital ecosystem.
VC Funding in Indian Startups: A Highlight Amid Caution
One of the standout transactions this week was the $120 million raised by fintech startup Dhan, a key player in the stockbroking space. This deal not only gave the company a substantial funding boost but also propelled Dhan to the rarefied ranks of Indian unicorns, startups valued at over $1 billion.
This investment, led by Hornbill Capital, Mitsubishi UFG Financial Group, and BEENEXT, was one of the few large funding rounds in 2023, offering some optimism for the ecosystem. However, investors remain focused on early-stage ventures, with 21 pre-Series A deals contributing a total of $36 million this week.
Early-Stage Focus: A Shift in Investment Strategy
A clear trend has emerged in the Indian startup funding space this year: investors are increasingly cautious about later-stage opportunities. The relatively high number of early-stage deals could indicate a shift towards smaller investments, possibly due to ongoing market uncertainties and global economic pressures.
Late-stage investments, which typically offer larger funding rounds and higher valuations, have been fewer and farther between in 2023. This is a key indicator that, despite the continued activity in early-stage investments, the broader ecosystem faces challenges in sustaining the larger capital inflows that have traditionally propelled it forward.
Key Transactions
- Dhan (Stockbroking Platform): Raised $120 million from Hornbill Capital, Mitsubishi UFG Financial Group, and BEENEXT.
- Intangles (Predictive AI Firm): Secured $30 million from Avataar Venture Partners, Baring India Private Equity, and Cactus Partners.
- Art of Time (Luxury Watch Retailer): Raised ₹175 crore (approx. $19.7 million) from Mithun Sacheti, Plutus Wealth, and Girish Mathrubootham.
- Rusk Media: Secured ₹103 crore (approx. $12.3 million) from IvyCap Ventures, LC Nueva, InfoEdge Ventures, and Woori Venture Partners.
- Ekkaa Electronics (ESDM Startup): Raised ₹108 crore (approx. $12 million) from Mukul Mahavir Aggarwal, Varun Daga Family, MAIQ Growth Scheme, and Caprize Aurix.
- Pantherun Technologies (Cybersecurity Startup): Secured $12 million from Sahasrar Capital Investors, Lucky Investment Managers, and Capital 2B (InfoEdge).
- GreyLabs AI (AI Startup): Raised ₹85 crore (approx. $9.5 million) from Elevation Capital, Z47, and angel investors.
- Meolaa (D2C Startup): Secured $6 million from General Catalyst, Claypond Capital, Colossa Ventures, and Turbostart Global.
- The Medical Travel Company: Raised $4.5 million from Nexus Venture Partners, Kriscore Capital, and athlete-led investment collective 4CAST.
Despite the growth of early-stage deals, the limited number of large-scale funding rounds continues to highlight the cautious approach of investors. While the $120 million deal for Dhan provides a boost, the overall mood in the market remains conservative, and it is unclear whether this trend will shift in the coming months.
As the year progresses, the Indian startup ecosystem will likely need to adapt to a more tempered funding environment, with startups needing to be more agile and focused on sustainable growth to attract investors.
