December 21, 2025: Indian startup funding saw a significant uptick in venture capital funding, in the third week of December 2025 with a total of $363 million raised across 29 deals. This marks a sharp increase from the previous week’s $131 million across 16 deals, driven in large part by MoEngage’s Series F investment round, which alone brought in $180 million.
Startups from sectors such as SaaS, spacetech, D2C, and electric vehicles were among the key beneficiaries, showcasing a diverse range of interests from investors as the year comes to a close.
While December often sees fewer funding activities as the year winds down, this week broke the mold, with investments flowing into a wide range of industries including Software as a Service (SaaS), spacetech, direct-to-consumer (D2C) brands, and electric vehicles (EVs). This surge not only signals strong investor confidence but also highlights India’s evolving startups ecosystem, which continues to attract attention even as global economic uncertainties linger.
Startup Funding Momentum Builds Briefly Before Year-End
MoEngage, a leading customer engagement platform, was undoubtedly the star of the week. The company’s Series F investment round attracted major investors such as ChrysCapital, Dragon Funds, Schroders Capital, and B Capital, highlighting its growing influence in the SaaS market. The $180 million infusion is expected to fuel the company’s expansion plans and enhance its platform capabilities, making it a key player in the customer engagement space.
But the customer engagement platform wasn’t the only standout. The week also saw a variety of other startups raising significant funds, further diversifying the landscape. Spacetech firm Digantara raised $50 million in its Series B round, signaling growing investor interest in space-based technologies. Electric vehicle startup Qucev secured $14.5 million in Series B funding, as the EV sector continues to gather momentum in India.
Similarly, direct-to-consumer startup Moxie closed a $15 million round, while fintech platform StockGro raised $13 million to scale its operations.
While these developments have energized the Indian startup scene, the larger question remains whether this wave of investment can sustain itself into 2025. Despite the promising end to the year, many analysts believe that 2025 may not surpass the funding levels seen in 2024.
However, there is cautious optimism that 2026 could bring a rebound, especially if macroeconomic conditions stabilize.
For now, December’s investment surge provides a glimmer of hope for India’s startup ecosystem, showing that innovation and investor confidence are still driving forward, even in the face of uncertainty.
Key Investment deals in third week of December
- MoEngage: $180 million in Series F round, led by ChrysCapital, Dragon Funds, and B Capital
- Digantara (Spacetech): $50 million in Series B, with investors like 360 ONE Asset and Peak XV Partners
- Moxie (D2C): $15 million from Bessemer Venture Partners and Fireside Ventures
- Qucev (EV): $14.5 million in Series B funding, led by Singularity AMC and Param Capital
- StockGro (Fintech): $13 million in Series B1, raised from BITKRAFT Ventures
With a diverse range of sectors capturing attention, the future looks bright for Indian entrepreneurs as they prepare for the challenges and opportunities of the coming years.
