March 3, 2025: The Indian startup ecosystem is beginning to feel the weight of global economic challenges, as venture capital (VC) funding continues to show signs of strain. February ended on a muted note, with VC investments falling for the second consecutive week.
In the final week of the month, the total funding in the Indian Startup eco-system amounted to just $101 million, spread across 21 deals. This represents a noticeable dip from the previous week, which saw a more robust figure of $147 million. The sharp drop in investment is attributed to a single high-value transaction: Geniemode’s $50 million funding round, leaving the remainder of the deals under $20 million.
Indian Startups Face $46M Funding Dip in February, Geniemode Dominates Deals
This ongoing trend suggests that the influx of large deals will remain scarce for the time being. Several factors, including the escalating global trade tensions, particularly between the U.S. and other nations, have contributed to this downturn. Additionally, the uncertainty surrounding the future growth trajectory of India’s domestic economy has led to a cautious approach from investors.
Further exacerbating the situation, stock markets in India experienced a significant drop last Friday, adding to the gloom.
Despite these challenges, the Indian startup ecosystem remains active, with several noteworthy developments occurring. Paytm has teamed up with the AI startup Perplexity, while Zomato has committed an additional Rs 1500 crore into Blinkit. In a sign of continued confidence in the venture capital space, Wipro has pledged a fresh $200 million to its venture arm, Wipro Ventures.
