Fewer Investors, More Exits Signal a Maturing Indian Startup Market

[AIcash]

Investor participation in India dropped sharply in 2025, with just 3,170 investors active — down 53% from last year — as funding became concentrated among repeat backers like Accel and Inflection Point Ventures.

At the same time, exit momentum improved. India recorded 42 tech IPOs, up 17% year-over-year, alongside a rise in M&A activity.

Government initiatives, including a $1.15 billion Fund of Funds and a $12 billion R&D and innovation program, helped reduce regulatory uncertainty and attract private capital — pointing to an ecosystem that’s maturing, not shrinking.