Venture Funding Sees a Strong Start in 2025
The beginning of 2025 brought an air of positivity as venture capital investments for January surpassed $1.75 billion, outpacing figures from the previous six months. Most of the funding was directed towards growth and late-stage startups, though early-stage ventures also played a role in this upward momentum. Significant acquisitions, such as HUL’s purchase of the D2C brand Minimalist and Everstone’s acquisition of the SaaS company Wingify, highlighted the achievements of entrepreneurs creating innovative products for both the Indian market and beyond.
Funding Overview for January
According to aggregated data, Indian startups secured $1.76 billion through 128 transactions in January alone. Of this, growth and late-stage funding represented $1.5 billion across 32 deals, while early-stage funding contributed $261.26 million across 80 transactions. Additionally, there were 16 instances of funding that were not disclosed.
Month-on-Month Trends
In 2024, Indian startups saw varying funding levels, starting with $719.42 million in January and reaching a peak of $1.92 billion in June. Comparing month-to-month, January 2024 experienced a 33% uptick from December 2023, which recorded $1.32 billion. Conversely, January 2025 showed a more than double increase year-on-year in relation to January 2024.
Top Growth-Stage Deals
During January, Impetus Technologies, an AI-driven data analytics platform, topped the funding chart with $350 million raised. This was followed by Innovaccer, a healthcare AI firm, which secured $275 million. Infra.Market, a proptech startup, garnered $125 million, and Aragen obtained $100 million for drug research. Netradyne, providing AI SaaS solutions, raised $90 million, while both OYO and Leap attracted $65 million each.
Additional significant deals included WeWork India, Infinity Fincorp Solutions, and Foxtale. More detailed information can be found through various sources.
Top Early-Stage Deals
Atomicwork, a B2B SaaS firm, received the highest early-stage funding, amounting to $25 million. Geri Care Health Services, focused on senior healthcare, raised $13 million. MicroMitti, a real estate investment platform, secured $10.3 million, while Sarla Aviation and Astrome Technologies each received $10 million for aerospace and telecommunications projects. Beyond Snack, VoltUp, Deconstruct, Ambak, and Medusa Beverages were also included among the top 10 deals.
Mergers and Acquisitions
January was notable for record-breaking merger and acquisition activity. Minimalist was sold for $350 million, while Wingify was acquired for $200 million. Milk Mantra, a dairy tech firm, was purchased by Hatsun Agro in a deal worth $27.5 million. Additionally, Axio (previously Capital Float) is set to be acquired by Amazon. Other notable acquisitions included Filter Coffee by Raise Financials and AgriCentral by DeHaat, among others.
City and Segment-Wise Deal Analysis
In January, startups based in Delhi-NCR raised $525.67 million across 33 deals, which accounted for 29.74% of the overall funding. Bengaluru trailed closely with 39 deals totalling $397.415 million (22.48%). Mumbai recorded 21 deals worth $145.16 million (8.21%), while Chennai and Pune exhibited lower activity levels, with 5 and 4 deals respectively.
The healthtech sector led in funding with $404.83 million, followed by AI which secured $355.68 million. The proptech industry raised $278 million, with SaaS, fintech, and e-commerce also reporting considerable sums. Smaller sectors, including EV and foodtech, attracted some funding, while deeptech and logistics received the least. However, the deal count reflected a different narrative.
Series-Wise Funding Breakdown
January saw seed funding dominate in terms of deal volume with 36 deals, followed by Series A, pre-seed, and pre-Series A with 26, 17, and 11 deals respectively. Debt funding amounted to $124.67 million, constituting 7.05% of the total funds raised. In terms of amount, Series D led with $441 million in funding.
Layoffs, Shutdowns, and Executive Changes
Layoffs saw a decrease in January, with only three startups laying off just over 200 employees. This indicates a positive shift in the job market compared to previous months. Meanwhile, Coca-Cola-backed foodtech startup Thrive ceased its operations.
January also marked significant leadership changes in the startup scene, with over 17 senior executives, including CEOs, MDs, CPOs, and co-founders, stepping down. Additionally, more than 48 key executive positions were filled, signalling a wave of transformation. For a thorough breakdown of these shifts, further information can be accessed.
Emerging Trends
Healthtech funding is leading: In spite of various challenges, healthtech startups have outpaced fintech and SaaS to become the top-funded sector in January. In 2024, healthtech startups continued to secure the highest funding since the onset of Covid.
Astrology tech might see a significant deal: The astrology sector may soon experience a major deal, either through mergers or new funding opportunities. Reports suggest that Flipkart is in discussions to acquire InstaAstro. Meanwhile, AstroTalk has ventured into the D2C market by launching an offline centre.
IPOs in the co-working sector: The co-working space is anticipated to lead the IPO landscape within the Indian startup ecosystem. Awfis has recently become the first Indian co-working firm to go public, while Smartworks is progressing by securing SEBI approval for its planned IPO. Indiqube and WeWork India have also submitted their draft IPO papers. Media reports indicate that several other proptech firms, including Simpliwork, Table Space, and DevX, are preparing for public offerings, and OYO and Pepperfry are waiting for suitable market conditions.
