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India's venture capital ecosystem raised roughly $16 billion in 2025 and saw deal activity grow about 18 per cent year-on-year, with transactions exceeding 1,300 across stages, a report said on Wednesday. 

The report from Bain & Company said growth was broad-based, driven by strong activity in sub-$50 million deals while the upper end also gained momentum with scaled transactions above $250 million doubling to eight.

Fintech deal value rebounded about 2.2 times year-on-year while software or SaaS funding grew roughly 1.5 times, the report added.

Fund-raising by VC and growth funds doubled to around $5.4 billion, led by a surge in $100 million-plus vehicles.

Investors focused on companies demonstrating strong unit economics and clearer monetisation pathways, reflecting a market that is increasingly rewarding business quality overgrowth at any cost, the report noted.

IPO-led exits rose 30 per cent over 2024, and strategic exits exceeded $1 billion in value.

Amidst global macroeconomic headwinds, geopolitical uncertainty, and ongoing technological disruptions, this growth was underpinned by improving exit visibility, stabilising valuations, and stronger investor focus on sustainable, capital-efficient growth models.

Public market exits accounted for over 65 per cent of total exit value, driven by a rise in large IPOs. Consumer technology and fintech together anchored the exit landscape, contributing more than 60 per cent of total exit value.

"India’s long-term venture opportunity is anchored in powerful structural drivers—rapid digital adoption, expanding domestic capital markets, policy-led levers, and a deep technology talent pool," said Prabhav Kashyap, Partner at Bain & Company.

IVCA President Rajat Tandon said that the sharp rise in fundraising, including thematic capital in areas such as deeptech and AI, reflects long-term conviction in India’s innovation economy, with capital increasingly aligned to scalable models, governance, and disciplined value creation.