VC investment in India dips to $2.4 bn in Jan-March: Report

New Delhi: Venture Capital investment in India declined to $2.4 billion in January-March 2025 from $2.6 billion in the preceding quarter as investors remained wary amid the current geopolitical situation, according to a KPMG report.

Looking ahead, the report said that VC investment in India could remain “somewhat soft” in the second quarter of 2025 although the long-term outlook remains positive given the country’s strong macros.

“India saw VC investment drop slightly from $2.6 billion in Q4’24 to $2.4 billion in Q1’25,” said KPMG Private Enterprise’s Venture Pulse—a quarterly report tracking investment trends globally across major regions around the world.

It noted that capital markets also took a beating in India during the quarter amid concerns of overpricing. While markets recovered somewhat in the second half of Q1 2025, the general trajectory was lower than initially expected in Q4 2024. VC investors in the country remained highly focused on consumer offerings in the quarter under review with areas such as e-commerce and quick commerce attracting maximum attention. Further, payments and lending also continued to be a key sector of investment in India.

“The most important thing in India right now is that the macros are intact. Nothing fundamentally has changed. The money has started coming back to India. There are certain large IPOs of startups that have been announced, which should hit the market over the next one or two quarters. I think we are back in business — and what we’re seeing now is really just a minor impediment — a speedbump,” Nitish Poddar, Partner and National Leader - Pvt Equity, KPMG said.