Bain Notes Second Consecutive Growth Year as India VC Funding Touches 16 Billion

Prabhav Kashyap, Partner at Bain & Company, Aditya Muralidhar, Associate Partner at Bain & Company, and Rajat Tandon, President, IVCA, said India’s venture capital growth in 2025 was supported by stronger exits, disciplined capital deployment, and rising investor confidence across fintech, SaaS, AI, and deeptech.

Prabhav Kashyap, Partner at Bain & Company, Aditya Muralidhar, Associate Partner at Bain & Company, and Rajat Tandon, President, IVCA, said India’s venture capital growth in 2025 was supported by stronger exits, disciplined capital deployment, and rising investor confidence across fintech, SaaS, AI, and deeptech.
India’s venture capital ecosystem recorded a second consecutive year of growth in 2025, with total funding reaching about 16 billion dollars, according to Bain & Company’s India Venture Capital Report 2026, prepared in collaboration with the Indian Venture and Alternate Capital Association. Deal activity also rose by about 18 percent year on year, with more than 1300 transactions across stages.

The report said the rise came even as broader private capital activity slowed, with growth supported by better exit visibility, stabilising valuations, and a stronger investor focus on sustainable and capital efficient growth models. Activity remained broad based, driven by continued momentum in deals below 50 million dollars, while larger transactions above 250 million dollars doubled from four to eight.
Prabhav Kashyap, Partner at Bain & Company, said, “India’s long term venture opportunity is anchored in powerful structural drivers, rapid digital adoption, expanding domestic capital markets, policy led levers, and a deep technology talent pool. While periods of disruption, such as the ongoing geopolitical situation, may temper deal activity in the near term and extend holding periods due to valuation gaps between buyers and sellers, this is likely to be followed by a meaningful rebound, supported by India’s underlying growth fundamentals. India will continue as an attractive innovation ecosystem for venture investor and looking ahead, we expect investor conviction to build across several tech first areas, including AI, deeptech, quick commerce, and clean energy.”

Technology led sectors played a central role in the funding rebound. Fintech deal value rose about 2.2 times year on year, while software and SaaS funding grew about 1.5 times. Wealthtech emerged as a major theme, with deal value increasing about five times, supported by rising digital adoption and greater household participation in financial assets. Consumer technology also remained resilient, with deal volumes increasing about 35 percent, led by medium ticket D2C and B2C commerce transactions.
Aditya Muralidhar, Associate Partner at Bain & Company, said, “After the reset in 2023, the Indian venture ecosystem has returned to a growth path, this time marked by clear signs of maturity. Capital is being deployed with greater discipline, with sharper focus on scalability and unit economics. Barring the funding spikes of 2021 and 2022, India is now seeing its highest ever funding levels, built on the right foundations of governance, capital efficiency, and exit visibility, positioning the ecosystem for sustainable, long term growth.”

The report also pointed to stronger exit activity. Public market exits accounted for more than 65 percent of total exit value, helped by a rise in large IPOs. Strategic exits rebounded sharply, crossing 1 billion dollars in value, up from about 65 million dollars in 2024. Consumer technology and fintech together contributed more than 60 percent of total exit value. Domestic capital markets also deepened, with demat accounts crossing about 210 million and domestic equity inflows reaching about 90 billion dollars, compared with about 63 billion dollars in 2024.
Fundraising also strengthened in 2025. Venture capital and growth equity funds raised about 5.4 billion dollars, nearly double the previous year, with larger funds above 100 million dollars driving the increase. Thematic capital also sharpened around AI, deeptech, climate, space, and industrial technology, reflecting a more mature and broader venture landscape.

Rajat Tandon, President, IVCA, said, “India’s venture and growth ecosystem has shown steady momentum, even as broader private capital markets softened. The growth is more balanced this year, with larger rounds returning alongside sustained mid stage activity, particularly across AI, deeptech, fintech and SaaS. At the same time, stronger exit visibility and a pickup in IPO led liquidity are reinforcing investor confidence. The sharp rise in fund raising, including thematic capital in areas such as deeptech and AI, reflects long term conviction in India’s innovation economy, with capital increasingly aligned to scalable models, governance, and disciplined value creation.”
Bain & Company and IVCA said India’s venture and growth ecosystem remains well placed for continued momentum, supported by domestic economic growth, rising consumption, and expanding digital infrastructure, even as geopolitical tensions, trade shifts, and rapid technological change remain areas to watch.

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