India’s venture capitalists (VCs) entered 2025 with dry powder piled high. Yet, they still held back. Deployment slowed, valuations reset, and limited partners demanded discipline over deal flow. So, what drove this cautious recalibration?
The Funding Paradox: The 2025 narrative has been all about the capital filter. By mid-December, total funding stood at roughly $11 Bn across 936 deals, down from the $12 Bn mopped up in 2024. However, the deal structure underwent a reset. The number of mega-deals (above $100 Mn) declined from 24 to 18, but the total capital deployed through them nearly doubled.
Quality Over Quantity: Seed stage activity stayed flat, reflecting thinner cheques and caution, as investors prioritised experienced founders over market momentum. Growth stage funding continued to recover, while late stage startup funding remained steady despite fewer deals.
Valuation Realignment: The valuation reset of 2025 saw sectoral giants like Meesho and OYO raise follow-on rounds at lower valuations (20-70% cuts). Meanwhile, valuation multiples for SaaS startups stayed humble at 7-10X of the revenue.
The LP Pivot: While fintech and SaaS continued to dominate the chatter in 2025, limited partners moved towards demanding DPI (distributed to paid-in capital). With domestic capital now backing 39% of new funds, these homegrown LPs are prioritising near-term cash yields over long-gestation projects. This shift has forced VCs to become exit-obsessed.
All in all, the homegrown investor ecosystem exits the year with cleaner cap tables and an obsession with positive unit economics. Having said this, here is how Indian VCs Hit Reset In 2025.
India’s residential resale market is notoriously opaque, with sellers facing unpredictable timelines, unclear pricing and hidden commissions. This makes selling a home stressful and often financially risky. Openhouse is trying to change this.
A Tech-Driven Solution: Founded in 2024, Openhouse is building a full-stack property resale platform. The startup offers AI-based pricing, a 90-day sale guarantee, professional home staging, legal support, and end-to-end transaction management. The platform aims to simplify the resale journey and empower sellers with data-backed insights and structured processes.
AI At The Core: Openhouse’s ‘Data IQ’ engine analyses over 1 Lakh data points monthly, ensuring accurate pricing and market intelligence. Meanwhile, its ‘Broker AI’ system matches buyers with the most suitable properties, streamlining the search process. These solutions help sellers make informed decisions and accelerate transactions.
The Road Ahead: With India’s top-city residential resale market valued at over $60 Bn, there’s ample room for disruption. As sellers increasingly seek transparency and efficiency, can Openhouse democratise resale for homeowners?
Nearly 25 startups shut down operations in 2025, double the 12 shutdowns recorded in 2024. So, which new-age tech companies bit the dust this year?