India’s VC Chill Deepens: Funding Slumps as Global Capital Warms Elsewhere

India’s startup ecosystem may be entering a prolonged venture capital winter, with CY25 funding down 21% yearonyear to just $5.7 billion—on track to hit a fiveyear low. While global VC activity surges, India’s deal volume and ticket sizes continue to shrink, raising concerns about investor sentiment and sectoral stagnation.

 

Key indicators of the slowdown:

Global contrast:

Investor behavior:

Unless the second half of 2025 sees a dramatic upswing, India’s startup ecosystem may face a cold, cautious funding climate well into 2026.

 

Sources: Fortune India, Financial Express, The Hindu BusinessLine, MSN India, Moneycontrol, Bain & Company.