India’s venture capital (VC) ecosystem strengthened in 2025, recording growth in both deal volume and funding value despite a broader global slowdown, according to a latest report by GlobalData.

The total number of VC deals announced in India rose around 11% year-on-year (YoY) in 2025, while overall funding value increased by nearly 10% during the same period, the data showed. In contrast, global deal volume dropped around 3% over the same period.

Aurojyoti Bose, Lead Analyst at GlobalData, said India continues to emerge as an attractive destination for venture investments, driven by ongoing digital adoption, rising domestic consumption, and investor focus on scalable business models with stronger unit economics.

“India is consolidating its position as an active VC destination, supported by continued digitisation, expanding domestic consumption, and sustained investor interest in scalable, unit-economics-driven business models,” Bose said.

Stronger deal activity boosts India’s global VC footprint

India’s performance also stood out globally. While India recorded growth in deal activity, global VC deal volume declined by around 3% in 2025. This relative outperformance helped India increase its share of global VC deal volume to about 8.1% in 2025 from nearly 7.1% in the previous year.

However, India’s share in global VC funding value slipped to around 3.5% in 2025 from approximately 4.2% in 2024. The decline came as global funding value surged by nearly 31%, largely driven by a sharp acceleration in investment activity in the United States.

Bose noted that while India continued to generate steady deal flow, the country lagged behind in attracting mega funding rounds that significantly influence global investment value.

According to GlobalData’s Financial Deals Database, the United States recorded around $20 billion VC deals in 2025, including two mega deals exceeding $10 billion. In contrast, India did not witness any billion-dollar VC deals during the year.

“The value trend highlights how concentrated big-ticket investments have become in a few markets. Going forward, India’s VC growth trajectory will depend on domestic demand expansion and the availability of late-stage capital,” Bose said.

He added that an improvement in investor risk appetite towards late-stage, high-value investments could help India convert its strong deal pipeline into a higher share of global VC funding value in the coming years.