NEW DELHI— Venture capital (VC) investment in India rose to $3.5 billion across 355 deals in the April–June quarter (Q2 2025), up from $2.8 billion across 456 deals in the previous quarter, according to KPMG’s latest Venture Pulse Q2 2025 report released on Tuesday.
Fintech remained one of the most attractive sectors for investors, alongside growing interest in health-tech and logistics, signaling confidence in India’s innovation-driven startup ecosystem.
“India’s venture capital landscape demonstrated resilience in Q2’25, with funding rising despite global uncertainties,” said Nitish Poddar, Partner and National Leader, Private Equity at KPMG in India. “Key sectors like fintech, health-tech, and logistics drew strong investor interest, reflecting confidence in India’s innovation potential.”
The report highlighted India’s increasing role as a key player in the regional startup economy, even as global VC investment dropped to $101.05 billion in Q2, down from $128.4 billion in Q1 2025.
Despite ongoing geopolitical tensions, trade disputes, and macroeconomic uncertainty, global VC funding held relatively firm, buoyed by large-scale investments in artificial intelligence (AI), defense tech, and space technology.
The United States continued to dominate the global VC landscape, attracting nearly 70% of all VC investment in Q2 2025. The five largest deals globally were concentrated in AI, defense tech, and space tech. AI-focused defense companies also secured significant funding outside the U.S., signaling a growing global trend.
Fintech also experienced a resurgence in investor interest globally, particularly from late-stage and large-ticket VC investors.
In contrast, VC investment in Europe remained relatively stable at $14.6 billion in Q2 2025, down slightly from $16.3 billion in Q1. However, deal volume dropped from 2,358 to 1,733 as investors shifted their focus to larger, late-stage deals.
Asia continued to see sluggish VC activity despite a modest increase in investment value from $12.6 billion in Q1 to $12.8 billion in Q2 — still the second-lowest total in more than a decade. Deal volume in the region fell sharply from 2,663 in Q1 to 2,022 in Q2 2025. (Source: IANS)
