Q1 2025 Snapshot: India Logs 270 Startup Deals, USD 7.9 Billion Invested, 18 Mega Rounds This marks an 8% increase over the amount invested during the same period in 2024, and a slight 1% decline compared to the immediate previous quarter
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We're not just saying that India can become home to the fastest-growing unicorns —it already is. As of December 31, 2024, India reported more than 100 unicorns, reflecting its position as one of the world's fastest-growing startup ecosystems.
India's booming startup ecosystem is a testament to the substantial private capital investment flowing into its startups. In the first three months of 2025, Private Equity–Venture Capital (PE-VC) firms invested more than USD 7.9 billion across 270 deals in Indian companies. This marks an eight per cent increase over the USD 7.3 billion (across 264 deals) invested during the same period in 2024, and a slight one per cent dip compared to the immediate previous quarter, which saw USD 8 billion invested across 262 deals — according to Venture Intelligence data.
Notably, deal volume also increased — up two per cent year-on-year compared to Q1 2024, and three per cent higher than the previous quarter. Q1 2025 recorded 18 mega deals (USD 100 million+ rounds) totaling USD 5.1 billion. This is a strong jump from 10 such investments worth USD 4.6 billion in Q1 2024, and slightly higher than the 20 deals worth USD 4.9 billion in the preceding quarter.
Largest investments of Q1 2025
The largest deal of Q1 2025 was Bain Capital's USD 508 million investment in publicly listed NBFC gold loan provider Manappuram Finance. The second biggest was KKR's acquisition of a controlling stake in hospital chain HealthCare Global for USD 400 million. This was followed by a USD 350 million investment in data analytics and AI solutions firm Impetus Technologies by Kedaara Capital.
Rounding out the top five, B Capital Group, M12, and others invested USD 275 million in SaaS-focused healthcare unicorn Innovaccer in a mix of primary and secondary investments, while Meesho closed a USD 270 million tranche in its ongoing funding round, attracting capital from Peak XV Partners, Tiger Global, WestBridge, Think Investments, Mars Growth Capital, and others.
Healthcare and FMCG sectors surge
Among the top-performing sectors, Healthcare & Life Sciences stood out, drawing USD 1.1 billion across 28 deals in Q1 2025. Leading the way was KKR's USD 400 million acquisition of HealthCare Global, followed by a USD 123 million investment in Delhi-based pharma company Tirupati Medicare and USD 109 million in Chennai-based diagnostic services firm Neuberg Diagnostics.
Meanwhile, the FMCG sector attracted USD one billion across 20 deals in Q1 2025. Among the notable investments was a USD 29 million funding round in Mumbai-based skincare brand Foxtale, led by Z47 (formerly Matrix Partners India), Kae Capital, Panthera Growth Partners, and others. This was followed by a USD 23 million investment in cosmetics brand Pilgrim, backed by Anicut Capital, Mirabilis Investment Trust, Narotam Sekhsaria Family Office, Vertex, and others. Additionally, The Whole Truth, a Mumbai-based healthy snacks brand, raised USD 16 million from Peak XV Partners, Sauce VC, Sofina, and Z47.
Growth beyond the metros
India's metro cities — Bengaluru, Hyderabad, Mumbai, and Delhi-NCR — continue to anchor the startup boom. However, the next wave of growth is increasingly emerging from Tier II and III cities, which now account for over 51 per cent of the country's startups, according to PIB.
Infosys co-founder Nandan Nilekani aptly captured this shift, saying: "We don't know what it means if a million companies are all roaming around trying to fix problems… and interestingly, more and more startups are happening outside the metros, and they are solving different issues."
Nilekani believes that by 2035, India could be home to one million startups, with most of them originating from beyond the traditional metro hubs.
