India’s VC Funding Surges 70% in January, Outpaces China

According to GlobalData, during January 2025, India’s venture capital (VC) funding sculpted from $520.5 to $883.2 million, which accounts for a staggering 69.7% growth year-on-year. This sharp growth in funding is substantiated by the increase in VC deals by 40.9% which has climbed to 131 from the previously recorded 93 deals. 

Aurojyoti Bose, Lead Analyst at GlobalData mentioned that “This growth trajectory indicates that India startups are not only attracting a greater number of VC deals but are also securing larger amounts of capital which reflects a positive change in the market”. “India continues to remain among the top five markets globally for VC funding activity both in terms of deal volume and value,” he said. 

Some of the most significant VC deals from India in the first month of the year included construction materials procurement platform Infra raising approximately $121 million, Neuberg Diagnostics, a diagnostic services provider received $109.4 million, and Leap Finance, an education financing company raised $60 million. 

GlobalData contends that 9.9% of the announced VC deals correspond to India during the month, while their portion in the rest of the world was only 3.6%.

2023 was set off to a flying start, with VC funding in India growing by 131% along with a record $43B in M&A activity conducted in the country’s startup sector. The growth in the Indian market along with it’s merger and acquisition activity surpassed that of China’s by leaps and bounds. China only managed to capture a mere $25B during the same period, compared to India’s emerging VC market.