India, Dec. 26 -- India's VCs Hit Reset In 2025

India's venture capitalists (VCs) entered 2025 with dry powder piled high. Yet, they still held back. Deployment slowed, valuations reset, and limited partners demanded discipline over deal flow. So, what drove this cautious recalibration?

The Funding Paradox: The 2025 narrative has been all about the capital filter. By mid-December, total funding stood at roughly $11 Bn across 936 deals, down from the $12 Bn mopped up in 2024. However, the deal structure underwent a reset. The number of mega-deals (above $100 Mn) declined from 24 to 18, but the total capital deployed through them nearly doubled.

Quality Over Quantity: Seed stage activity stayed flat, reflecting thinner cheques and cautio...