A total of 23 funds worth over $3.2 Bn were launched in Q1 2025 to back Indian startups, with a focus on fintech, consumer services, and enterprise-grade AI solutions.
Only three out of the 23 funds launched in Q1 were dedicated to deeptech sectors, such as robotics, AI, semiconductor, and healthcare.
Fintech and AI sectors received significant attention with six funds worth $1.18 Bn and five funds worth $1.13 Bn respectively launched in the quarter.
Seventeen funds amounting to close to $1.5 Bn were launched for early-stage startups in Q1, while growth and late-stage startups saw relatively fewer fund launches.
Investment trend saw an increase in startups opting for debt funding, with venture debt firms like Stride Ventures and Alteria Capital being active during the quarter.
Leading venture capital and private equity funds like Accel India, Bessemer Venture Partners, Avendus, Trifecta Capital, and Wipro Ventures launched significant funds to support startups.
Accel Capital raised $650 Mn for its Fund VIII, targeting early-stage startups in AI, consumer brands, fintech, and manufacturing.
Avendus PE marked the first close of its $350 Mn Future Leaders Fund III, while Bessemer Venture Partners closed its second India-focused fund at $350 Mn.
Trifecta Capital rolled out a $230 Mn venture debt fund, focusing on sectors like fintech, EV, and sustainability, planning to invest in over 100 startups.
Other notable funds launched include those by Bharat Value Fund, Venturi Partners, Cornerstone Ventures, Kotak Alt, Prime Venture Partners, and Wipro Ventures in Q1 2025.