India’s venture capital ecosystem witnessed a remarkable resurgence in 2025, with aggregate fundraising eclipsing $3.3 billion, nearly fivefold higher than the prior year, signaling renewed investor confidence in the nation’s startup landscape.

Limited partners (LPs) returning to India-focused VC funds are exhibiting heightened selectivity, prioritising team stability, consistent multi-cycle performance, and realised exits over mere fund size or rapid growth projections. This shift underscores a maturing investment mindset amid evolving macroeconomic conditions and demand for clearer exit visibility.

Several marquee funds marked significant closures, including Nexus Venture Partners’ $700 million vehicle, Accel India’s $650 million fund, and Bessemer Venture Partners’ $350 million India fund. An active IPO pipeline — with companies such as Zepto, PhonePe, Oyo, and Boat preparing public offerings — has further bolstered LP confidence in capital return timelines.

Industry leaders attribute the rebound not only to robust performance metrics but also to India’s burgeoning position as a global hub for AI-led innovation, where engineering talent and cost efficiencies drive sustained investor interest.