India’s VCs Hit Reset In 2025
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.
From The Editor’s Desk
💸 Ola Electric Gets PLI Boost
- The EV maker has received a sanction order for INR 366.78 Cr in PLI incentives for FY25. This is in line with the company’s claims for INR 400 Cr in sops, citing eligible sales of INR 3,000 Cr in FY25 and a 13-14% incentive rate.
- The inflow is expected to strengthen Ola Electric’s liquidity position and support its financial performance in the coming quarters
- The incentives come as a sigh of relief for Ola Electric, which is grappling with multiple challenges, including a shrinking market share, mass layoffs, declining revenues, consumer complaints, and an intensified CCPA probe over misleading ads.
📊 New-Age Tech Stock In 2025
- The year saw a record 18 new-age tech IPOs, collectively raising INR 41,000 Cr from public markets. While gains were strong for big names, a significant number of new listings now trade below their listing price.
- Among the 31 startup stocks listed before 2025, only 11 ended the year with gains, led by CarTrade and Yatra. On the flip side, Nazara, Ola Electric, and DroneAcharya struggled due to controversies, weak financials, and eroding investor confidence.
- While both Sensex and Nifty ended 2025 in the green, new-age tech stocks saw selective gains, driven by narratives around profitability and sector consolidation.
📢 Gig Workers To Strike
- Gig workers from Swiggy, Zomato, Blinkit, Amazon, and Flipkart are observing another all-India strike on December 31 to protest against unsafe conditions, low pay, and a lack of social security.
- The Telangana Gig and Platform Workers Union (TGPWU) led the call, urging nationwide participation. The strike follows repeated protests by gig workers demanding higher pay, reduced commissions, and an end to 10-minute deliveries.
- This comes as states like Rajasthan and Karnataka have already introduced gig worker social security laws, while the Centre’s recent four new labour codes are also expected to provide gig workers with a safety net.
⚔️ Wherehouse.io Founder Vs Curio
- Following his detention by Delhi Police, the defunct startup’s cofounder Vaibhav Chawla has initiated a settlement process with client Curio. This follows his allegation that he was questioned in a “frivolous” case.
- Chawla has now issued a voluntary statement retracting his earlier posts, admitting they created a misleading narrative regarding Curio’s conduct.
- The dispute stems from a contract termination, after which Wherehouse retained Curio’s perishable stock and pending settlements without reconciliation. The matter later escalated into a public social media spat.
Inc42 Markets
Inc42 Startup Spotlight
Can Openhouse Solve India’s Home Resale Puzzle?
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?
Infographic Of The Day
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?
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