Advertisment

Indian startups raise $1.76 Bn in January

The start of 2025 brought a wave of optimism as venture funding in January soared past $1.75 billion, eclipsing the figures of the previous six months.

Harsh Upadhyay and Shashank Pathak
New Update
funding

The start of 2025 brought a wave of optimism as venture funding in January soared past $1.75 billion, eclipsing the figures of the previous six months. Growth and late-stage startups accounted for the majority of the funding, but early-stage deals also added momentum to the upward trend. In addition, major acquisitions like D2C brand Minimalist by HUL and SaaS firm Wingify by Everstone have underscored the success of founders developing products for India and beyond.

funding

According to data compiled by TheKredible, Indian startups raised a total of $1.76 billion across 128 deals in January. Growth and late-stage funding accounted for $1.5 billion from 32 deals, while early-stage funding contributed $261.26 million through 80 deals. Additionally, 16 rounds of funding remained undisclosed. 

[M-o-M trend]

 In 2024, Indian startups experienced fluctuating funding, starting with $719.42 million in January and peaking at $1.92 billion in June. On a monthly basis, January 2024 marked a 33% increase from December 2023, which recorded $1.32 billion. However, January 2025 saw a more than twofold year-on-year jump compared to January 2024.

funding 

[Top 10 growth-stage deals]

 In January, AI-driven data analytics platform Impetus Technologies led the funding chart with $350 million, followed by Innovaccer, a healthtech AI firm, raising $275 million. Infra.Market, a proptech startup, secured $125 million, while Aragen received $100 million for drug research. Netradyne, an AI SaaS provider, raised $90 million. OYO and Leap each garnered $65 million.

funding

 Other notable deals include WeWork India, Infinity Fincorp Solutions and Foxtale. Check TheKredible for more details.

[Top 10 early-stage deals]

Atomicwork, a B2B SaaS company, received the highest funding at $25 million. Geri Care Health Services, which focuses on senior healthcare, raised $13 million. MicroMitti, a real estate investment platform, secured $10.3 million. Sarla Aviation and Astrome Technologies both received $10 million for aerospace and telecom projects. Beyond Snack, VoltUp, Deconstruct, Ambak, and Medusa Beverages were also among the top 10.

funding

[Mergers and Acquisitions]

January witnessed record-breaking mergers and acquisitions. Minimalist was sold for $350 million, while Wingify was acquired for $200 million. Milk Mantra, a dairy tech company, was bought by Hatsun Agro in a $27.5 million deal. Axio (formerly Capital Float) is also set to be acquired by Amazon. Other notable acquisitions include Filter Coffee by Raise Financials and AgriCentral by DeHaat, among others.

[City and segment-wise deals]

In January, Delhi-NCR-based startup secured $525.67 million across 33 deals, accounting for 29.74% of the total funding. Bengaluru followed closely with 39 deals and $397.415 million (22.48%). Mumbai saw 21 deals, attracting $145.16 million (8.21%) while Chennai and Pune had comparatively lower activity, with 5 and 4 deals, respectively.

In January, Healthtech led with $404.83 million in funding, followed by AI with $355.68 million. Proptech secured $278 million, while SaaS, Fintech, and E-commerce raised notable amounts. Smaller sectors like EV and Foodtech also attracted funding, with Deeptech and Logistics receiving the least. However, the table shows a different trend when it comes to the number of deals.

[Series wise deals]

In January, Seed funding led in deal volume with 36 deals, followed by Series A, pre-seed, and pre-Series A with 26, 17, and 11 deals, respectively. Debt funding secured $124.67 million, accounting for 7.05% of the total funding raised. In terms of amount, Series D saw the most, with $441 million in funding.

funding

[Layoffs, shutdowns and departures]

Layoffs also decreased in January, with only three startups letting go of just over 200 employees. Compared to previous months, this marks a positive trend in the job market. 

 Meanwhile, Coca-Cola-backed foodtech startup Thrive shut down its operations.

January witnessed significant leadership shifts in the startup ecosystem, as over 17 senior executives—including CEOs, MDs, CPOs, and co-founders—stepped down from their roles. Simultaneously, more than 48 key executive positions were filled, highlighting a wave of transformation. For a detailed breakdown of these changes, click here.

[Trends]

Healthtech funding on top: Despite challenges, healthtech startups have surpassed fintech and SaaS as the top-funded segment in January. Even in 2024, healthtech startups have received the highest funding since the Covid era.

Astrotech may see a big deal: Astrology startups could soon witness a major deal, either through consolidation or fresh funding. We recently reported that Flipkart is in talks to acquire InstaAstro. Meanwhile, AstroTalk has expanded into the D2C space by launching an offline center.

IPOs in co-working: The co-working sector is expected to lead the IPO landscape within the Indian startup ecosystem. Awfis recently became the first Indian co-working startup to go public, while Smartworks has taken a crucial step forward by securing SEBI approval for its proposed IPO. Indiqube and WeWork India have also filed their draft IPO papers. Media reports suggest that several other proptech companies, including Simpliwork, Table Space, and DevX, are preparing for public offerings, while Oyo and Pepperfry are waiting for favorable market conditions.

[Conclusion]

 January had something for all, be it exits, larger sequential rounds, or even a new round of bets on new firms. The focus on Healthcare and healthtech can be expected to continue considering the budget stress on it, while other deep tech startups can also hope for better days ahead. It appears only a matter of time before an Indian startup breaks through in one of these rarefied spaces. The fact that some of the most storied firms are listed today or on their way to be listed has further vindicated the India story. The gap between private and public markets still remains wide, however, and a narrowing of the gap will mean lower expectations for many founders now. But in the larger picture, the prospects remain strong for a standout year. 

funding Startup Report
Advertisment
Fetch New URL