India's startup ecosystem saw robust funding activity in February 2025, with total funding reaching $1.65 billion (₹14,418 crore) at a median valuation of $83.2 million, according to data from Tracxn.

This represents a 19.5% jump from January 2025, when startups raised $1.38 billion. However, the figure is lower year-on-year, as February 2024 had witnessed $2.06 billion in total funding.

Startup Funding Trends in FY25

Between April 2024 and February 2025, Indian startups collectively secured $25.4 billion across 2,200 funding rounds. Despite the monthly increase, the yearly trend suggests a slowdown, as startups raised $30.4 billion in 2024, marking a 6.5% drop from 2023's $32.5 billion.

City-wise Funding Breakdown

The startup capital of India, Bengaluru, continued to lead the funding race, attracting $353 million in investments during February. However, the median round size in Bengaluru was $2 million.

Mumbai-based startups secured $102 million in funding, but their median round size was significantly higher at $5 million, indicating larger deals in the city.

Top Fundraises in February 2025

Several major funding rounds took place in February, with fintech and B2B startups leading the way.

• Oxyzo, a fintech firm, topped the funding chart with a ₹100 crore conventional debt raise.
• B2B e-commerce platform udaan followed with a $75 million Series G equity round, led by M&G Plc.
• Other startups securing substantial funding included SpotDraft, Cashfree Payments, Zeta, and Geniemode.

The median funding round size in February stood at $1.92 million, reflecting the overall funding trend.

Notable Acquisitions in February 2025

February also witnessed key acquisitions in the Indian startup space:

• Head Digital Works acquired Deltatech Gaming (parent company of Adda52) for ₹491 crore.
• Bengaluru-based SaaS firm Perfios acquired fraud detection platform Clari5.
• MO Alts (Motilal Oswal Alternate Investment Advisors) acquired a majority stake in Megafine Pharma for ₹460 crore.

These acquisitions highlight the growing consolidation in India's startup ecosystem, particularly in gaming, SaaS, and fintech.

IPO Activity in February 2025

A total of 16 IPOs were listed in February, with a median IPO market capitalization of $26.5 million.

Some of the most notable listings included:

• Hexaware
• AJAX
• Ken India
• Dr. Agarwal's Eye Hospital
• Royal Arc

This surge in IPO activity suggests a renewed interest in public listings, despite the overall funding slowdown in the Indian startup ecosystem.

Key Investors and Venture Capital Firms

Several well-known investors played a key role in funding Indian startups during February 2025.

Among the angel investors, Shark Tank India judges such as Ritesh Agarwal, Anupam Mittal, Aman Gupta, and Peyush Bansal were actively involved in multiple deals.

Leading venture capital firms that drove startup funding rounds included:

• Blume Ventures
• Eximius Ventures
• Unicorn India Ventures
• Peak XV
• Accel
• Nexus Venture Partners

The Indian startup ecosystem remains resilient, with February 2025 seeing strong investor interest despite a year-on-year decline in total funding.

While the monthly uptick in funding is a positive indicator, the drop compared to February 2024 suggests that investors are becoming more selective. Sectors like fintech, SaaS, and B2B e-commerce continue to attract strong investments, while IPOs and acquisitions indicate a maturing startup ecosystem.

Moving forward, experts believe that funding activity in India will depend on macroeconomic factors, regulatory changes, and investor confidence in high-growth sectors.

The Current active IPO are NAPS Global, Balaji Phosphates.

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