During Q1 2025, Indian startup investment stayed flat at $3.1 billion against the last quarter, with investors continuing to accumulate reserves. In Inc42's 'Indian Tech Startup Funding Report, Q1 2025,' 23 funds worth more than $3.2 billion were raised in the March quarter to invest in Indian startups.

In spite of continued debates regarding the absence of deeptech innovations in the nation, deeptech attracted modest investor interest in the new fund raisings in Q1. Just three of the 23 funds that entered the market were sector-focused deeptech, which spanned robotics, sophisticated AI models, semiconductors, EV charging infrastructure, future medicine, defense technology, aerospace, and drones.

The majority of the capital raised during the first quarter was put into areas such as fintech, consumer services, and enterprise-level AI solutions. Six funds totaling $1.18 billion were directed towards fintech, which was the top choice among investors. Surprisingly, fintech startups raised the most capital, raising $739 million in 33 deals during Q1.

Following fintech, the space for AI saw five $1.13 billion funds come out in the last quarter. In addition, SaaS and consumer technology saw four specialty fund launches in the first quarter of 2025.
From a stage perspective, seed-stage companies remained in vogue among large investors during Q1, as 17 funds totaling nearly $1.5 billion were raised to invest at this stage during the quarter.