VC funding for Indian startups hits $1.6b in October
- ByStartupStory | November 3, 2025
VC Funding for Indian Startups Hits $1.6 Billion in October 2025
Indian startup ecosystem witnessed a robust venture capital investment of approximately $1.6 billion across nearly 110 deals in October 2025, marking the second-highest monthly funding tally of the year, just shy of January’s $1.76 billion. This surge reaffirmed growing investor confidence and activity despite broader economic uncertainties, making October a vibrant month for capital inflows.
Growth and late-stage funding dominated the landscape with $1.41 billion raised across 22 deals, led by mega rounds such as Zepto’s $450 million boost, Uniphore’s $260 million raise, and significant investments in fintech players Snapmint ($125 million) and Dhan ($120 million). Early-stage startups also saw healthy traction, accumulating $312 million from 77 deals, indicative of sustained investor appetite for innovation and emerging founders.
Bengaluru remained the leading city for startup funding, attracting nearly 59% of total capital raised ($1.02 billion across 48 deals). Mumbai and Delhi-NCR followed with $441 million and $160 million in funding, respectively, while emerging hubs Pune and Hyderabad showed steady but smaller-scale investments.
Sector-wise, e-commerce led October funding with over $520 million channeled across 18 deals, representing over 30% of the total. Fintech and AI startups also collectively commanded nearly half of the funding volume, supporting India’s broader digital transformation and financial inclusion ambitions. Conversely, healthtech and deeptech segments received comparatively smaller investments, reflecting early-stage developmental phases.
October’s funding momentum was further bolstered by an active IPO environment, with startups such as Lenskart and Groww preparing to list publicly, reinforcing confidence in startup growth trajectories and market readiness.
Despite a slight slowdown in merger and acquisition activity, with only three deals closed relative to eight in September, the ecosystem remains vibrant, supported by strong capital raises across stages and sectors.
In summary, the $1.6 billion venture capital influx in October 2025 highlights India’s sustained startup growth momentum, broad investor participation, and sectoral diversification. This robust funding environment sets the stage for continued innovation, market expansion, and entrepreneurial success over the coming months.
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