India’s remarkable resilience in global venture capital landscape

• Growth highlights the increasing confidence of investors in Indian startups, even as other key markets such as China and the United Kingdom face declining funding trends.
• Country accounts for approximately 8% of the total number of VC deals worldwide and about 4% of global deal value.

India has demonstrated exceptional resilience and dynamism in the global venture capital (VC) market, registering a 14 per cent year-on-year increase in deal volume and an impressive 29 per cent rise in deal value during the first five months of 2025.

The notable growth highlights the increasing confidence of investors in Indian startups, even as other key markets such as China and the United Kingdom face declining funding trends.

The surge in funding reflects India’s emergence as a thriving hub for innovation and entrepreneurship. Factors contributing to this robust performance include the rapid digitalisation of services, widespread technological penetration, a strong pool of skilled talent, and a supportive regulatory framework.

Together, these elements have created fertile conditions for startups to flourish and attract substantial investments.

Key player

While countries like China and the UK have experienced reductions in both the volume and value of VC deals, Aurojyoti Bose, Lead Analyst at GlobalData, said that India has maintained its position among the top five global markets in venture capital activity.

“The country accounted for approximately 8 per cent of the total number of VC deals worldwide and about 4 per cent of global deal value during the period under review. The US, despite a decline in deal volume, recorded a substantial increase in deal value but India’s sustained growth underscores its unique position within the global ecosystem.”

Looking ahead, he said that  India’s venture capital momentum is expected to persist, especially in sectors leveraging technology to solve critical societal challenges.

“The synergy between a vibrant startup ecosystem and heightened investor interest is poised to cement further India’s status as a key player in the global venture capital arena.”