Indian startups raise $3.7 Bn in March quarter: Entrackr Report

Indian startups raised $3.7 billion in the first quarter of 2025 across a mix of growth and early-stage deals. The quarter saw several large-sized fundraises, including multiple deals above $250 million, alongside steady early-stage investments. Mergers and acquisitions also remained active, with notable transactions such as the $350 million acquisition of Minimalist by HUL. Layoffs continued to decline, with only a few companies downsizing and overall employee impact remaining limited.

According to data compiled by TheKredible, Indian startups raised approximately $3.7 billion in funding during the first quarter of 2025. This amount included 68 growth and late-stage deals totaling $3.05 billion, along with 209 early-stage deals worth $683 million. Additionally, there were 42 undisclosed deals during this period. However, no startup achieved unicorn status in Q1 2025.

[Q-o-Q trend]

In Q1 2025, Indian startups secured $3.7 billion, marking a nearly 10% jump from the previous quarter (Q4 2024). Q1 2025 also ranked among the highest-funded quarters when compared to the same quarters in the past two years — Q1 2023 and Q1 2022. For context, the startup ecosystem achieved $12 billion in funding during the funding boom of Q1 2022.

For Q-o-Q funding trend, visit TheKredible

[Top 15 growth-stage deals]

In Q1 2025 (January–March), the top 15 Indian startups raised notable funding across sectors such as AI, fintech, healthtech, and enterprise solutions. Impetus Technologies led with $350 million, followed by Innovaccer ($275 million) and Zolve ($251 million). Other major fundraises included Darwinbox ($140 million), Infra.Market ($125 million), Leap Finance and Aragen (each $100 million), Netradyne ($90 million), ToneTag ($78 million), and Udaan ($75 million). Check the full list below:

 [Top 15 early-stage deals]

In early stage funding, Atomicwork led with $25 million, followed by Lucidity ($21 million), Harsoria ($20 million), and TrueFoundry ($19 million). Waterfield Advisors raised $18 million, while Spyne secured $ 16 million. Cognida.ai, Abound, Geri Care, and Navadhan raised between $12.8 to $15 million.

For more information, visit TheKredible for more.

[Mergers and Acquisitions]

The first quarter of 2025 witnessed significant mergers and acquisitions in the Indian startup ecosystem, with a total of 50 deals taking place. Among the most notable acquisitions, D2C skincare brand Minimalist was acquired by FMCG giant Hindustan Unilever Limited (HUL) for nearly $350 million. This was followed by SaaS company Wingify, which was bought by Singapore-based PE firm Everstone for $200 million.

Other key M&A activities included the acquisition of Axio (formerly Capital Float) by an e-commerce major, Flipkart’s Super.money taking over fintech startup BharatX, M2P Fintech acquiring AI startup Mad Street Den, and fintech unicorn Chargebee acquiring AI-driven customer tracking platform Trainn.

 [City and segment-wise deals]

Bengaluru-based startups led the funding activity in Q1 2025, securing 115 deals and raising over $1.4 billion, accounting for 38% of the total funding. They were followed by Delhi-NCR-based startups, which closed 79 deals amounting to $884.53 million, representing 23.85% of the total capital raised.

Mumbai, Hyderabad, and Pune-based startups followed next, with 54, 14, and 13 deals, respectively. Notably, Mumbai-based startups contributed 12.61% of the total funding, raising $467.68 million.

Fintech led the funding charts in Q1 2025, with 41 startups raising over $905.37 million. Healthtech, e-commerce, and AI startups followed, securing 38 deals ($496 million), 35 deals ($308.66 million), and 24 deals ($475 million), respectively. SaaS, foodtech, proptech and EV startups also secured funding this quarter.

[Series-wise deals]

In Q1 2025, seed-stage deals led in terms of volume, with 98 deals raising $181.33 million. Series A followed, with 57 deals securing $401.7 million.

In terms of total funding raised, Series D took the lead, amassing $748.6 million across 9 deals, accounting for 20.18% of the total funding. Series B followed, raising $682.34 million from 18 deals, contributing 18.4% of the total capital raised.

Check TheKredible for more information.

​​[Layoffs, shutdowns and departures]

Layoffs saw a slight decline, with only three startups letting go of nearly 350 employees. Ola Electric, now a listed company, also laid off 1,000 employees. The layoff numbers remained almost flat compared to 1,200 in Q4 2024. In 2024, around 4,700 employees faced layoffs, marking a sharp decline from 24,000 in 2023 and 20,000 in 2022.

The first quarter of 2025 saw four startup shutdowns. ANS Commerce, acquired by Flipkart, announced its closure. The list also includes Deep Rooted, O'Be Cocktails, and Thrive.

 Meanwhile, the startup ecosystem experienced notable departures of top executives in Q1. According to data, 38 top-level executives, including CEOs, CBOs, CFOs, co-founders, managing directors, and presidents, have resigned. During the period, there were 102 key hirings. The full list can be accessed here.

[Trends]

Healthy early-stage activity: Despite the funding winter, early-stage investments remained steady with 209 deals worth $683 million, indicating sustained interest in emerging startups, especially in SaaS, AI, and fintech.

Strong M&A momentum: The ecosystem recorded 50 mergers and acquisitions in Q1 2025, led by landmark deals such as HUL’s $350 million acquisition of Minimalist and Wingify’s $200 million acquisition by Everstone. Other notable transactions—PayU acquiring Mindgate Solutions, Jumbotail acquiring Solv, and the Amazon-Axio deal—underscore the growing trend of market consolidation and strategic exits within the startup landscape.

No new unicorns: No startup achieved unicorn status in Q1 2025, marking a shift from previous years where unicorn creation was more frequent. This reflects a more cautious valuation environment among investors.

Fewer layoffs and shutdowns: Layoffs declined significantly, with only three startups letting go of employees and listed firm Ola Electric conducting a separate round of job cuts. There were only four shutdowns, suggesting that startup closures are slowing and companies are finding ways to stay afloat.

Executive movement signals strategic shifts: Q1 saw 38 top-level resignations and 102 key hirings, indicating organizational restructuring as startups prepare for funding rounds, pivots, or public offerings.

 [Conclusion]

The acquisitions of Wingify and Minimalist, and the number of $50 million plus deals that we would consider ‘large’, yet no new Unicorns points to a clear possibility. Lack of breakthrough startups, coupled with the push towards more conservative financials. A founder like Bhavish Aggarwal for instance, for all his missteps, could at least be credited for thinking big, and it is perhaps no coincidence that his whole portfolio of ‘Unicorns’ is struggling to keep the narrative going now when Unicorns are becoming rare yet again. That is the nature of hype cycles, and the pause on Unicorn sightings should not be a cause for worry at all. The AI boom has just started, and expect a few crash and burn examples, and some winners to emerge by sometime in 2026. One thing you have to give to Indian founders is a remarkable speed with which they suss out the real opportunities, unless they are simply building on a proven template.  With IPO action and consequently exits also expected to pause for a quarter or more, it will take more than a unicorn or two to bring back a broader recovery that covers all parts of the ecosystem. Until then, the odds continue to favour the disrupted acquiring the disruptors, as HUL did.