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India’s startup ecosystem hit a turning point last year, with 13 new-age tech companies, including Swiggy, FirstCry and Go Digit, going public. This IPO momentum fuelled a wave of new fund launches, with 81 VC, PE, micro and government-backed funds worth over $8.7 Bn announced during the year.
Early stage startups drew the most investor interest last year, while fintech remained the top sector of focus.
Despite a slow start to 2025, with only Ather Energy and Arisinfra going public, momentum picked up in the second half of the year, and a total of 13 new-age tech companies eventually listed on the Indian bourses.
While the public market debuts of BlueStone, Lenskart, DevX and IndiQube were relatively muted, Smartworks, Groww, Physics Wallah and Zappfresh received strong investor interest. But the standout of the 2025 startup IPO season has been Urban Company.
Cut to December 2025, and the year so far has fundamentally reshaped India’s startup funding architecture. A wave of successful exits has done more than trigger big cashouts for early backers. It recycled capital back into the ecosystem and gave institutional investors greater confidence in startups as an asset class.
As a result, VC and PE firms continued to accumulate dry powder to back the next wave of innovators. India saw the launch of a diverse mix of new funds in 2025, with an aggregate corpus of over $12.1 Bn (about INR 11.20 Lakh Cr) until December 2025. This is a sharp 39% year-on-year (YoY) jump from the $8.7 Bn announced last year.
Commenting on the surge in fund launches, India Accelerator’s CEO Ashish Bhatia noted that the 40% rise in VC fund launches is a sign of how the market has evolved.
“India is no longer being approached with a short-term or hit-and-trial mindset. Investors now have a strong belief in its long-term potential. They’re not preparing for just another funding cycle, they’re positioning themselves for the decade ahead.”
A majority of the 2025 funds, about 58%, are targeting early stage companies, reflecting investor conviction in young but scalable ventures even as overall funding becomes more selective. Growth and late stage pools have also picked up, with 17 of the 77 funds focussed on these segments, signalling continued appetite to double down on category leaders.
Sectorally, fintech continued to be the biggest draw, accounting for around 16% of the new corpus, followed by consumer-focussed funds (15.5%) and AI-centric vehicles (12%).
For 2026, VCs project a phase of disciplined investments. They see growth returning, but in a more cautious and controlled manner.
“If 2023–24 were about survival and 2025 about recalibration, 2026 will be the year of disciplined reacceleration. On the macro side, India’s PE/VC investments have already stabilised after two years of decline,” said VC firm 360 One Asset’s senior fund manager and strategy head Abhishek Nag.
As the year draws to a close, Inc42’s ‘Year In Review’ series highlights the 15 most significant fund launches of the year, capturing how investors are repositioning their plays around profitability, AI, and infrastructure in the world’s third-largest startup ecosystem.
Editor’s Note: This is neither an exhaustive list nor a ranking of any kind. The funds have been chosen at Inc42’s editorial discretion.
Chrys Capital Closes Its Largest Fund At $2.2 Bn
Last month, PE firm ChrysCapital closed its tenth investment fund, ChrysCapital X, at $2.2 Bn (approximately INR 18,480 Cr).
The new fund will support established businesses across consumer services, healthcare, financial services, and enterprise tech segments. The firm expects to deploy the corpus over the next 3 to 4 years. It already has several deals in the works
According to ChrysCapital, this is the largest PE fund ever raised by an India-focussed firm. Before this, the PE firm had launched nine India-centric funds with a combined corpus of $5 Bn.
The capital for Fund X came from around 30 global investors, including public pension funds, insurers, asset managers, family offices, and institutions across Japan, the Middle East, Southeast Asia, Europe, and the US. A notable portion of the capital also came from Indian institutional investors and major family offices.
ChrysCapital has backed more than 110 companies since its inception in 1999. Its portfolio includes startups like Lenskart, Dream11, FirstCry, Awfis, Healthkart, and The Sleep Company, among others.
Quadria Raises $1 Bn+ In 3rd Fund
Asia-focussed healthcare private equity firm Quadria Capital closed its third fund in May this year at $1.07 Bn, surpassing its initial goal of $800 Mn.
The fund included $954 Mn in primary commitments and $114 Mn in co-investments. An additional $300 Mn in co-investment capacity is expected over the investment cycle, bringing the fund’s total deployment potential to $1.3 Bn+. This fund is nearly 60% larger than its previous $600 Mn fund, which it raised in 2020.
The firm plans to deploy around 60% of its third fund’s capital in India, with the remaining to be invested across other ASEAN markets. Almost 40% of the fund is already invested in companies such as Aragen Life Sciences, NephroPlus, and Maxivision.
A91 Partners Closes Third Fund At $665 Mn
Mumbai-based growth stage investment firm A91 Partners announced the final close of its third fund in April at $665 Mn.
The investor, which counts Go Digit, Aye Finance, Sugar Cosmetics and Atomberg among its portfolio companies, aims to invest in SMEs operating in sectors such as consumer, financial services, healthcare, manufacturing and technology.
Through its third fund, A91 Partners will invest between $10 Mn and $50 Mn in 15 companies.
Founded in 2018, A91 Partners is an investment firm that focuses on India’s consumer, technology, financial services, and healthcare sectors.
Accel Raises $650 Mn For New India Fund
In January, US-based VC firm Accel raised $650 Mn for its eighth India fund. The capital was secured from 131 undisclosed investors.
The Silicon Valley-based investment firm, which counts Moneyview, Flipkart, Swiggy and Moglix among its unicorn portfolio, had previously raised $650 Mn the Accel India VII fund in March 2022.
Accel first arrived in India in 2005. The VC firm raised $10 Mn in its maiden fund, the Accel India Venture Capital Fund, in 2008.
Multiples Closes Continuation Fund At $430 Mn
Marking one of India’s largest portfolio deals in the private equity space, Multiples Alternate Asset Management closed its $430 Mn (INR 3,670 Cr) continuation fund in May. The fund was led by global investors HarbourVest Partners, Hamilton Lane, LGT Capital Partners and TPG NewQuest.
The continuation vehicle extended the holding period of select Fund II assets while allowing LPs to either exit or reinvest.
The transaction enabled Fund II investors to realise returns from a portfolio that included Vastu Housing Finance, Quantiphi and APAC Financial Services, with the new fund acquiring interests in these companies along with follow-on capital.
Founded in 2009 by Renuka Ramnath, Multiples manages about $3 Bn in assets and has backed companies such as ACKO, Delhivery, Dream Sports and MoEngage. The PE firm aims to invest in growth and late stage startups with an average ticket size between $15 and $50 Mn.
Elevation Capital Sets Up $400 Mn Fund For IPO-Focussed Startups
In August, Elevation Capital launched a $400 Mn late stage fund, Elevation Holdings, to support tech startups preparing to go public.
The fund has been designed to back founders aiming for an IPO and to stay invested well beyond the listing. With portfolio companies such as FirstCry, ixigo, Meesho and Paytm, Elevation aimed to build long-term partnerships with businesses ready for public markets.
The fund would invest mainly in consumer and financial services platforms with a strong tech focus. It would target 10–15 startups that are likely to list within three years, with cheque sizes between $20 Mn and $50 Mn.
The fund intends to invest in both existing portfolio companies and external startups through primary and secondary deals, including purchasing ESOPs.
L Catterton’s India-Focussed Consumer Fund Hits First Close At $200 Mn
In September, L Catterton’s India-focussed consumer fund marked its first close at $200 Mn (about INR 1,760 Cr).
The fund, launched last year by L Catterton Asia and former Hindustan Unilever executive Sanjiv Mehta, aims to invest in mid-market consumer businesses across India. It targets a total raise of $400 Mn, with an additional $200 Mn greenshoe option.
L Catterton plans to invest in F&B brands, consumer healthcare services and retail businesses. The fund is said to have received commitments from the International Finance Corporation and clients of Kotak Private.
With $37 Bn in global AUM, L Catterton capped its commitment to the India fund at 19.9%. The first close came amid rising investor interest in India’s consumer internet and consumer brands sectors.
HealthKois’ $300 Mn Fund For Growth Stage Startups
HealthKois launched a $300 Mn (about INR 2,500 Cr) fund in June this year to back early and growth stage startups in healthtech, life sciences, medtech, healthcare delivery and climate health. The fund also carried a $100 Mn greenshoe option. It aims to invest in 13 to 16 companies with ticket sizes between $7 Mn and $25 Mn.
Managed by the leadership team behind HealthQuad (Charles Janssen, Ajay Mahipal and Pinak Shrikhande) HealthKois planned to support portfolio startups with strategy, go-to-market planning, organisation design and governance.
HealthQuad, founded in 2016, has backed companies such as HealthifyMe, BeatO and Medikabazaar, and operates two funds.
HealthQuad’s second fund closed at $162 Mn three years ago and invested in THB, Stanplus, ekincare, Impact Guru and Qure.ai. Its first fund closed in 2017 with $11.6 Mn.
Bessemer Wraps Up Second India-Focused Fund at $350 Mn
In March, Bessemer Venture Partners closed its second India-focussed fund at $350 Mn (INR 3,052 Cr) to back early stage startups. The fund aims to invest across AI-enabled services, SaaS, fintech, digital health, consumer brands and cybersecurity.
The fund would primarily invest in early stage startups while also reserving capital for follow-on rounds. Although the investment firm did not specify how many startups it would support, it expected to deploy the fund over the next three to four years.
Bessemer, which began its India operations in 2005–06 and shifted focus to tech and internet startups around 2010, has invested in more than 80 Indian companies, including Swiggy, Urban Company, BigBasket, LivSpace and PharmEasy.
Avendus Secures INR 850 Cr For Future Leaders Fund III
In January, Avendus marked the first close of its Future Leaders Fund III (FLF III), raising INR 850 Cr from domestic family offices and Indian institutions.
Registered as a Category-II AIF, the fund targets to raise INR 1,500 Cr with an additional INR 1,500 Cr green-shoe option.
Launched in May 2024, FLF III plans to invest in 12–14 companies with cheque sizes of INR 150–300 Cr across financial services, healthcare, technology, consumer goods and manufacturing.
FLF I and II had backed companies such as Lenskart, Bikaji, Juspay and SBI General Insurance. FLF I returned over 100% of investor capital within four years, while FLF II was recently fully deployed. Founded in 2019, the platform managed INR 1,850 Cr and invested in late stage startups alongside other PE firms.
Quadria Group Launches $300 Mn HealthQuad Fund
After formally separating from impact investor KOIS and taking full ownership of the HealthQuad platform, Quadria Group launched the HealthQuad Fund III in June, targeting a corpus of $300 million, including a $100 million greenshoe option.
HealthQuad, first created in 2016 to back early growth healthcare innovation, plans to invest in 13–15 startups across AI-driven healthcare, digital therapeutics, ambulatory care, enterprise SaaS and point-of-care devices. The fund is expected to invest mainly in India, with limited allocation to Southeast Asia.
HealthQuad’s previous fund closed at $162 Mn in 2022 and supported early stage companies in high-growth healthcare segments. Across Fund I and II, it backed startups such as Qure.ai, Medikabazaar, THB, Ekincare, Redcliffe Labs, Wysa and GoApptiv.
Bharat Value Fund III Hits First Close At INR 1,250 Cr
In the beginning of the year, Bharat Value Fund (BVF) marked the first close of its third fund at INR 1,250 Cr (about $144 Mn). The fund targets to raise INR 2,500 Cr, with an INR 1,000 Cr greenshoe option.
It was expected to reach its final close by mid-year. Managed by The Wealth Company Pvt Ltd, the fund achieved its first close within 45 days.
BVF aims to invest across sectors in resilient, asset-backed businesses and plans to back mid-market, high-growth enterprises with revenues between INR 300 Cr and INR 1,000 Cr.
Across its Series 2 and Series 3 raises, BVF collected INR 3,000 Cr. Its exit strategy included IPOs within 30–36 months, along with options such as private equity deals and M&A.
Trident Growth Partners Secures INR 1,000 Cr In First Close Of Maiden Fund
In April, Trident Growth Partners (TGP) marked the first close of its maiden fund at over INR 1,000 Cr, with plans to reach INR 2,000 Cr by the end of the year.
Founded by former Premji Invest partners Atul Gupta and Rajesh Ramaiah, along with ex-Malacca Ventures executive Pravan Malhotra, the fund aimed to invest in 10–12 companies over four years.
TGP planas to focus on Series B and late stage startups, taking minority stakes with cheque sizes of INR 150–200 Cr and reserving capital for follow-on rounds in later years.
The sector-agnostic fund backs themes such as India’s expanding consumer market, the ‘China-plus-one’ manufacturing shift and companies building for global markets.
TGP has already made its first investment in SaaS startup Spotdraft, co-leading an INR 110 Cr Series B round. Its backers included SIDBI’s Self Reliant India Fund, Dr Ranjan Pai’s family office and over 30 startup founders.
Trifecta Marks 1st Close Of INR 2K Cr Venture Debt Fund IV
Trifecta Capital announced the first close of its INR 2,000 Cr fourth venture debt fund in January. The Trifecta Venture Debt Fund IV includes a greenshoe option of INR 500 Cr and aims to back over 100 startups with average cheque sizes ranging from INR 25 Cr to INR 30 Cr.
Trifecta launched the fourth fund in August 2024 and has received support from insurance companies, family offices and corporate treasuries. Its third venture debt fund closed at INR 1,777 Cr in September 2023, surpassing its original INR 1,500 Cr target.
The fund will target startups across sectors such as fintech, EV, consumer goods and services, logistics, new-age manufacturing, B2B services, renewable energy, and sustainability.
Trifecta’s portfolio includes ixigo, BlackBuck and MobiKwik, all of which went public last year. The firm also backs over 50 unicorns and soonicorns such as BigBasket, BlueStone, Country Delight, Cars24, Rebel Foods, Shadowfax, CarDekho, CureFit, Meesho, PaperBoat, Urban Company and Zepto.
Founded in 2014 by Rahul Khanna and Nilesh Kothari, Trifecta provides non-dilutive financing to early and growth-stage companies. It has deployed INR 6,500 Cr across 180 startups through its three funds since inception.
Neo Group Hits First Close Of INR 2K Cr Secondaries Fund
Neo Asset Management, the asset management arm of Neo Group, marked the first close of its INR 2,000 Cr secondaries PE fund at INR 750 Cr in July.
Registered as a Category II AIF with SEBI, the fund plans to back 12–15 startups across BFSI, healthcare/life sciences, consumer, IT/ITeS, industrials, and services, with cheque sizes ranging from INR 50 Cr to 250 Cr. It targets an internal rate of return of 24–27%.
The fund aimed to invest in companies with positive EBITDA, strong governance, growing revenues, and a clear exit path within 24–48 months.
Neo Secondaries Fund had already backed five startups, including Nobel Hygiene, Purplle, Fractal Analytics, IDfy, and an undisclosed device lifecycle management startup, allocating INR 50–100 Cr per company, with the largest stakes in Fractal Analytics and Nobel Hygiene.
[Edited By Shishir Parashar]
The post Funds Worth Over $12.1 Bn+ Launched For Indian Startups In 2025 appeared first on Inc42 Media.
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