Newsletter
India’s startup scene just had its best funding quarter in a year, pulling in $2.5 billion in Q1 FY25.
The deets: funding jumped 13.6% from last quarter and 8.7% year-on-year, placing India third globally after the US and UK. The biggest rounds came from Erisha E Mobility, Darwinbox, and Infra Market, each securing $100 million+.
Late-stage startups led the charge, pulling in $1.8 billion, while early-stage startups raised $528 million, and seed-stage funding hit $157 million.
- Delhi-based startups dominated with 40% of the total funding, followed by Bengaluru at 22%.
Sector trends: auto tech took off, raking in $1.1 billion, a major leap from $215 million last quarter. Enterprise software and retail also saw gains, pulling in $651 million and $482 million, respectively.
What’s shifting: while no unicorns were minted, IPO and M&A activity is rising. Six companies, including Nukleus, Maxvolt Energy, and Volercars, went public, and M&A deals hit 38, up 15% from last quarter and 41% YoY.
Zoom out: but for the first time in a while, no new unicorns emerged during Q1. The money’s still flowing, but investors are now backing solid growth over flashy valuations.
