June 22: 2025: The third week of June brought another period of subdued investment activity for Indian startups. Venture capital (VC) funding for the week stood at $56 million, spread across 12 deals. This marks one of the lowest weekly totals for 2025 so far, highlighting the continued cautious mood among investors.
In comparison, the previous week saw $299 million invested, showing how quickly sentiment can shift. This is the fourth time in 2025 that total weekly VC funding has fallen below $100 million, with the lowest being $14 million in January.
Current Funding Landscape for Indian Startups Remains Under Pressure
Indian Startups are navigating a complex funding environment. Weekly capital inflows continue to hover around the $100–200 million range. A combination of global economic uncertainty and investor caution is slowing new deals and making capital harder to access, particularly for early-stage ventures.
As of now, there’s little indication that this trend will reverse in the near term. Investors appear to be staying selective, and risk appetite remains low across several sectors.
Some Positives in a Challenging Week
Despite the overall funding slowdown, two well-known Indian startups signaled potential for future growth:
- Urban Company reported a profit, signaling operational efficiency.
- Meesho relocated its headquarters from the United States to India, a strategic shift likely tied to its IPO plans.
These developments suggest that while funding remains tight, established Indian startups are still finding ways to position themselves for long-term opportunities.
Policy and Market Headwinds Hit Specific Sectors
The bike taxi segment saw a major setback this week. The Karnataka state government imposed a ban on their operations, raising uncertainty for players in the mobility sector.
Such regulatory changes continue to impact startups working in evolving or sensitive sectors, where policy support remains crucial for growth.
Weekly VC Deals Fall Below $100M for Fourth Time in 2025of the Week
A few notable transactions stood out during the week:
- CLR Facility Services secured $15 million from British International Investment (BII).
- Oben Electric, an EV startup, raised ₹50 crore (~$11.5 million) from Helios Holdings, the Sharda Family Office, and the Kay Family.
- Techfino, a fintech startup, brought in ₹65 crore (~$7.4 million) from Stellaris Venture Partners and Saison Capital.
- Okinawa Autotec, an EV manufacturer, raised ₹60 crore (~$6.9 million) from Dhruv Khush Business Ventures.
These deals show that while investor interest has not disappeared entirely, it is more targeted and limited in scope.
Outlook: Steady but Slow
The Indian startup ecosystem continues to face a tough environment. Fundraising remains inconsistent and cautious, with fewer high-value deals. However, operational improvements by startups and strategic realignments like Meesho’s HQ move suggest a longer-term focus remains.
Unless broader market conditions change, the current pace of funding is likely to continue.
