January 4, 2025: The Indian startups has experienced a sluggish start to 2025 in terms of venture capital funding, with a total of just $14.4 million raised in the first week of January. This represents a sharp dip from the $47 million raised in the same period last year.
However, industry experts suggest that the quiet beginning is in line with usual market trends, as January often starts slow due to the extended holiday season in December.
Indian Startups Seals Six Funding Deals in First Week of January 2025
The first week of the new year saw only six deals, underscoring the lack of activity. Despite this, the outlook for the Indian startup sector remains positive. The total venture capital funding raised in 2024 is expected to have grown by more than 20% compared to 2023, signaling that the funding winter may be behind us.
Additionally, 2024 marked a breakthrough year, with 13 Indian startups going public—more than any other year in recent memory. This surge in Initial Public Offerings (IPOs) has renewed investor confidence, with more exit opportunities now available for venture capitalists.
The optimistic outlook is further supported by the announcement that Accel, a leading VC firm, successfully closed its seventh India fund with a remarkable $650 million raise. With more venture firms expected to follow suit, 2025 could still see a resurgence in Indian Startups funding activity as the year progresses.
Meanwhile, The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce & Industry, has joined forces with Stride Ventures, a prominent venture debt firm, to accelerate the growth of Indian startups and expand their global reach.
This partnership aims to create significant opportunities for startups by combining essential financial support with strategic mentorship and enhanced market access.
