The Indian startup ecosystem has kicked off March on a positive note, with venture capital (VC) funding reaching new heights. In the first week of March, the total funding raised across 22 deals surged to $361 Mn—marking the highest weekly total for 2025 so far. This sharp increase is a promising signal for India’s startup sector, especially as it comes after a relatively quiet start to the year in terms of funding.
The week’s funding haul is particularly noteworthy because it includes two significant $100 mn deals. These large deals are seen as a major positive booster for the ecosystem, helping restore confidence in the funding environment amidst growing concerns of an economic slowdown.
In comparison, the previous week saw just $101 mn in VC investments across 14 deals, underscoring the impressive leap in investor activity during the first week of March. Even more telling is that the second-highest funding amount for this year came in February, at $323 mn. The sharp rise in the first week of March signals a potential rebound for the Indian startup scene, which has been facing some challenges in recent months due to the broader economic slowdown and macroeconomic uncertainties.
The growth in funding can be attributed to a combination of factors, including the resurgence of large, high-value deals that are likely helping to restore investor optimism. These substantial funding rounds are seen as a sign that investors are still willing to place big bets on high-potential Indian startups, despite the broader headwinds. Additionally, the emergence of fresh capital in the market through new funds raises hopes that the ecosystem might continue to attract necessary investments.
Among the notable developments is the raising of fresh capital by Prime Ventures and A Junior VC. These funds, both of which are known for their early-stage investments in promising Indian startups, represent a key part of the ongoing evolution of the Indian VC landscape. The influx of new capital into these funds could be crucial for Indian startups seeking funding to scale up and navigate the challenges posed by the uncertain macroeconomic environment.
However, not all is smooth sailing for India’s venture capital landscape. Peak XV Partners, one of the marquee VC firms in India, continues to face turbulence. Recently, the firm saw another key executive depart, adding to the list of high-profile exits that have raised concerns about the firm’s ability to sustain its momentum. The departure of top executives at prominent VC firms could have an impact on investor sentiment, especially if they indicate broader organizational or strategic challenges.
Looking ahead, the funding momentum of the first week of March raises hopes that the Indian startup ecosystem might be on the cusp of a recovery. However, experts remain cautious, pointing out that while the current week’s performance is encouraging, it remains to be seen if this uptick will continue throughout the month. A number of factors, including the ongoing economic slowdown, rising inflation, and global uncertainties, could continue to dampen investor enthusiasm.
The coming weeks will be crucial in determining whether the first week’s strong performance is an outlier or part of a sustained recovery. While the macroeconomic environment may continue to pose challenges, the increased availability of capital from funds like Prime Ventures and A Junior VC offers hope that Indian startups will have access to the resources they need to thrive.
For now, the Indian startup ecosystem is navigating through both the headwinds and opportunities of a changing economic landscape. As the year progresses, all eyes will be on whether this positive momentum can be sustained.
Key Tractions:
HR tech unicorn Darwinbox secured $140 million in funding from Partners Group, KKR, and Gravity Holdings.
Leap Finance raised $100 million in debt financing from HSBC under the ASEAN Growth Fund.
InsuranceDekho raised $70 million from Beams Fintech Fund, Mitsubishi UFJ Financial Group (MUFG), and BNP Paribas Cardif.
Beauty brand indē wild attracted $5 million in funding from Unilever Ventures, SoGal Ventures, and True.
