Fundraises by local venture capital (VC) firms have slowed this year as limited partners (LPs) seek sharper investment strategies, disciplined deployment and greater visibility on exits.
India-focused VC firms have raised $2.8 billion so far in 2025, across 31 funds as of October 14. This is down from the $3.8 billion raised across 44 funds in 2024 and well below the 2022 peak of $8.6 billion across 103 funds, according to data from PitchBook.
Pankaj Jethwani, managing partner at W Health Ventures, a healthcare-focused fund, observes that increasingly, more LPs now look for funds with clear differentiation and depth. “This is especially true for India, where capital is now abundant but sectoral specialisation is still rare,” Jethwani said.
The surge in 2022 was powered by global liquidity and abundant capital flows. Since then, LPs have grown more discerning, favouring funds that demonstrate sectoral depth, a clear investment thesis and visible paths to exit.
Even so, the lower fundraising totals do not signal fading interest in India. “There continues to be a belief in India’s growth story and the ability to build resilient businesses,” said Nithin Kaimal, partner and COO of Bessemer Venture Partners, highlighting the opportunity in AI-native businesses built from India for the world.
For LPs evaluating healthcare funds, the key questions now revolve around scalability, exit visibility and genuine advantages in sourcing and value creation, Jethwani said. He added that while healthcare investments are inherently long-term, exits are happening faster as platforms scale and public markets deepen.
Vishesh Rajaram, managing partner at Speciale Invest, noted that the central concern for deeptech funds is timing — whether India’s deeptech ecosystem is ready for meaningful exits. “What gave investors comfort was our early evidence of scale and liquidity across the portfolio,” Rajaram said.
Several India-focused VC firms closed fresh funds this year, including Accel ($650 million), Bessemer Venture Partners ($350 million), A91 Partners ($665 million), W Health Ventures ($70 million) and Cornerstone VC ($200 million).