India’s startup ecosystem continued to witness significant funding activity in February 2025, with total startup investments reaching ₹14,402 crore (US$ 1.65 billion) at a median valuation of ₹726 crore (US$ 83.2 million), according to data from Traxcn. This reflects a 19.5% increase from January 2025 but remains 20% lower than February 2024, when total startup investments stood at ₹17,988 crore (US$ 2.06 billion).

India’s Startup Funding Trends in FY25

Between April 2024 and February 2025, Indian startups raised a total of ₹2,21,701 crore (US$ 25.4 billion) across 2,200 funding rounds, showcasing resilience despite global economic fluctuations. The fintech sector emerged as the most active, with major deals dominating the month’s funding landscape.

City-Wise Breakdown: Bengaluru Leads the Startup Race

• Bengaluru startups attracted the highest investments, raising ₹3,081 crore (US$ 353 million).
• Mumbai startups followed with ₹890 crore (US$ 102 million), recording a higher median round size of ₹44 crore (US$ 5 million).
• Other emerging startup hubs like Delhi-NCR, Hyderabad, and Chennai also contributed significantly to the monthly total.

Key Startup Investments in February 2025

The biggest funding deal of February 2025 was secured by Oxyzo, a fintech firm, which raised ₹87,290 crore (US$ 1 billion) in conventional debt financing. Other notable funding rounds included:

• udaan, an e-commerce startup, raised ₹6,547 crore (US$ 75 million) in Series G equity funding.
• Additional major fundraisers included SpotDraft, Cashfree Payments, Zeta, and Geniemode.

Major Acquisitions in February 2025

Mergers and acquisitions played a crucial role in shaping the startup landscape. Key deals included:

• Head Digital Works acquiring Deltatech Gaming for ₹491 crore (US$ 56.2 million).
• Perfios acquiring Clari5, a fraud detection platform.
• Motilal Oswal Alternate Investment Advisors (MO Alts) acquiring a majority stake in Megafine Pharma for ₹460 crore (US$ 52.7 million).

IPO Boom: 16 Companies Go Public

February 2025 also witnessed an active Initial Public Offering (IPO) market, with 16 companies debuting on stock exchanges.

• The median IPO market capitalization stood at ₹2,313 crore (US$ 26.5 million).
• Some of the biggest IPOs included Hexaware, AJAX, Ken India, Dr. Agarwal’s Eye Hospital, and Royal Arc.

Top Investors Driving Startup Growth

Indian angel investors and venture capitalists (VCs) played a crucial role in funding rounds. Some of the most active investors included:

• Angel Investors: Ritesh Agarwal (OYO), Anupam Mittal (Shaadi.com), Aman Gupta (boAt), and Peyush Bansal (Lenskart).
• Venture Capital Firms: Blume Ventures, Eximius Ventures, Unicorn India Ventures, Peak XV, Accel, and Nexus Venture Partners.

Year-on-Year Comparison: A 6.5% Decline in 2024

Despite the strong funding in February 2025, total startup funding in 2024 declined by 6.5% compared to the previous year:

• 2024 startup funding: ₹2,65,002 crore (US$ 30.4 billion).
• 2023 startup funding: ₹2,83,692 crore (US$ 32.5 billion).

Conclusion: What’s Next for Indian Startups?

While India’s startup ecosystem continues to attract strong investments, challenges remain, including macroeconomic uncertainties and global funding slowdowns. However, with increasing participation from angel investors, venture capital firms, and a growing IPO market, India remains one of the world’s most promising startup hubs. The coming months will be crucial in determining whether funding momentum continues, especially in high-growth sectors like fintech, e-commerce, and SaaS.

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