New Delhi, July 22
Venture Capital (VC) investment in India rose to $3.5 billion across 355 deals in the second quarter of 2025 (Q2 2025) from $2.8 billion across 456 deals in the preceding quarter, a report said on Tuesday.
During the period, fintech remained one of the hottest sectors for investment in the nation, said KPMG in its latest 'Venture Pulse Q2 2025' report.
“India’s venture capital landscape demonstrated resilience in Q2’25, with funding rising despite global uncertainties. Key sectors like fintech, health-tech, and logistics drew strong investor interest, reflecting confidence in India’s innovation potential,” said Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India.
The quarter’s performance underscores the country’s growing role in shaping the region’s startup ecosystem, Poddar added.
Meanwhile, global venture capital investment declined to $101.05 billion in the quarter from $128.4 billion in Q1 2025.
However, despite the drop, the Q2 remained a relatively strong quarter despite ongoing geopolitical conflicts, trade tensions, and macroeconomic uncertainty, the report stated.
The focus on VC investors remained largely on large-scale opportunities, especially in the AI and defence-tech space.
According to the report, the US dominates global VC investment in AI, attracting deals worth over $1 billion in the space.