India’s venture capital (VC) investments reached $3.5 billion across 355 deals in Q2 2025. This is up from $2.8 billion across 456 deals in Q1, according to KPMG’s Venture Pulse Q2 2025 report. The growth was driven by strong investor interest in key sectors such as fintech, healthtech, and logistics.
This highlights the resilience of India’s startup ecosystem despite global uncertainties. The largest VC deal in India during the quarter was a $218 million seed round raised by PB Healthcare. PB Healthcare is a startup developing a tech-enabled health delivery platform.
Fintech remained the hottest sector.
India’s VC investments see significant growth
It was buoyed by funding rounds like the $200 million raised by Groww and $172 million by IKF Finance.
Investor confidence in fintech has been boosted by successful US fintech IPOs. This offers a promising outlook for mature Indian startups to explore public listings or acquisitions soon. While India saw rising VC funding, global venture capital investment dipped from $128.4 billion in Q1 to $101.05 billion in Q2 2025.
The decline was influenced by the absence of outlier deals like OpenAI’s massive $40 billion raise in Q1. Despite this drop, Q2 remained relatively robust amidst ongoing geopolitical tensions, trade conflicts, and macroeconomic uncertainties. Globally, the focus was on large-scale opportunities in AI and defence technology.
These sectors are expected to maintain momentum as governments increase funding to drive AI innovation and technology sovereignty.