The author, who is a keen advocate of venture capital and startups in India, explains events in the country.
Here is another commentary from Archana Jahagirdar
(pictured), the founder of India-based Rukam Capital. She
writes about what is happening in the Indian economy and
considers the investment implications. The following article
focuses specifically on Indian venture capital.
We value this expert insight into a large and growing economy.
These articles are designed to get conversations going – so
please respond with any views if you wish. The usual editorial
caveats apply. Email [email protected]
and [email protected]
2025 has obviously been a year of tremendous global economic
volatility so far, but what is interesting and striking about the
Indian venture capital space is that according to new data it is
not only surviving but thriving, despite this very challenging
international environment.
The new GlobalData report shows that Indian venture capital
funding grew by 40 per cent in early 2025. The numbers are
year-on-year analysis of investment value in January and February
of this year and demonstrate that the Indian VC space is
considerably outperforming its global peers.
GlobalData also found that deal volume rose by 11 per
cent in this period in India. By contrast, global deal
volume contracted 9 per cent during this period. Global funding
value for venture capital investment did grow at 17 per cent, but
that is rather less than half the rate in India.
India”s strength and adaptability have solidified its position as
one of the leading five venture capital markets globally,
representing approximately 9 per cent of all transactions and
more than 4 per cent of the worldwide funding value by early
2025, according to the report.
“This growth reflects a thriving startup environment, where
innovative ideas are increasingly attracting the attention of VC
firms,” said Aurojyoti Bose, lead analyst at GlobalData.
“This substantial rise in value not only highlights the growing
confidence of investors but also the increase in average deal
size,” he added.
India’s startup ecosystem, driven by sustained progress,
therefore is continuing to strengthen its reputation as a
prominent hub for global innovation.
“India’s growth trajectory underscores its unique position as a
hub for innovation. The significant growth in both VC deal volume
and value indicates that investors are increasingly recognising
the potential of Indian startups to deliver innovative solutions
across various sectors. This trend is likely to continue as more
entrepreneurs emerge with groundbreaking ideas,” said
Bose.
This growth in the Indian venture capital space is obviously
being driven in part by India’s rapid economic growth which in
turn is creating an ever-larger middle class that is becoming
increasingly sophisticated in its consumer habits. This means
more consumer-focused startups and the growth of domestic
brands.
But we would also note one other important factor. India has long
been home to many of the world’s largest tech firms and Indian
talent often leads many of the world’s biggest tech firms, in
Silicon Valley and beyond. Traditionally, it was the global tech
firms that employed Indian tech talent.
Now what we are seeing is Indian entrepreneurs launching their
own firms in large numbers and they have global aspirations.
Indeed, it may be that the future nexus of international
technology firms is not in Silicon Valley but the Indus Valley.
