India’s startup scene is heating up, and this time, it’s not just about quantity; it’s about quality. In October 2025, startups across India raised an impressive $1.83 billion from private equity and venture capital, up more than 60% from September’s total of $1.14 billion.
But whilst the value increased, the actual number of startups raising decreased. October saw 100 deals done, compared with 108 seen in September. And yet, funding jumped over 60%. (DealStreetAsia).
What that means in practice is that fewer startups are raising, but those that are, are getting much bigger cheques. In short: investor confidence is there, it’s just reserved for the few, not the many.
From A ‘Funding Winter’ To A Warmer Spring
As described by Serrari Group, India went through a ‘funding winter’ in 2023 and early 2024. However, India has well and truly bounced back.
Compared with October last year, funding is up 63%. Interestingly however, whilst the number of deals hasn’t drastically changed, the value of them has.
With inflation becoming more stable, as well as India being recognised as one of the fastest-growing economies in the world, it’s no surprise that investors are taking notice and piling in to get a piece of the action.
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Fewer Deals, Bigger Confidence
Whilst the actual number of deals dropped in October, the value of them skyrocketed. Early-stage funding took a dip with 38 deals compared to 44 in September. However, growth-stage funding (Series B +) accounted for over 50% of funds raised. These startups raised a total of $957 million across 19 deals in October, compared with $472 million from 10 deals in the previous month. (Serrari Group)
This shift is a clear sign that India’s startups are growing and maturing, with investors seeing real opportunity for revenue growth and development. In fact, this evolution towards later stage deals could be a sign that India is becoming a resilient and trustworthy startup economy that not only generates revenue, but builds real, long-term businesses.
Four ‘Megadeals’ Lead The October Push
When it came to October’s big raises, 4 deals led the way, raising a total of $955 million. The biggest was Zepto, India’s grocery delivery app, which raised $450 million led by CalPERS, one of the biggest pension funds in the US. The round, which was also backed by VC General Catalyse, pushed Zepto’s valuation to a whopping $7 billion.
India’s AI sector also caught investor attention, with Uniphore, a business AI platform, raising a $260 million Series F round. Big names like Nvidia, AMD, Databricks and Snowflake all took part showing a lot of confidence in India’s future as an AI superpower.
FinTech Leads Startup Success
The other two megadeals in October came from the fintech sector. The first was a buy-now-pay-later startup called Snapmint, which raised a $125 million round led by General Atlantic and joined by Prudent Investment Managers, Kae Capital, Elev8 Venture Partners, and others.
The other was Dahn, a stock trading platform, which bought in a big $120 million Series B raise.
Sectors Leading The Charge
When it came to the sectors leading the way, Zepto’s mega raise of $450 pulled the logistics sector into the top of the funding charts. Next came financial services, which bought in $449.6 million across 15 deals in October.
In third place came SaaS, which pulled in more than $400 million across 23 deals.
Between them, these 3 sectors show exactly where investors feel that India is going to thrive.
Where Is The Money Flowing?
When it came to the geographical areas in India that investment was flowing, Bengaluru took the top spot, attracting over $1 billion in deals in October.
Next came Mumbai, India’s financial capital, with $441 million attracted.
Delhi came third with $160 million, followed by Pune ($46.9 million) and Hyderabad ($24.6 million).
India’s Startup System
October’s stats show that India is well and truly out of its ‘funding winter’ and into a new phase of growth. Investors aren’t just giving small cheques, they are investing billions into Indian startups that they believe show real, long-term growth.
Combine that with companies like Google and Microsoft investing in data centres in the country, as well as India’s growing youth economy, and it’s no surprise that India is attracting so much interest.
What will 2026 bring? We wait and see….
