Year Ender 2025: ‘Year of Cash’ for Indian Startups! Record jump in IPO, 18 companies listed… raised Rs 41,000 crore

New Delhi. After a prolonged slowdown in funding, 2025 emerges as the year of cash for Indian startups. There was a revival in public issue activity, quality of deals improved and a clear shift towards disciplined growth. While 2023 was defined as a ‘funding winter’ and 2024 as one of cautious optimism, 2025 will be especially remembered for the historic surge in withdrawals through public markets.

Funding declined but the average medium deal size nearly doubled to about US$1.4 million in 2025 from about US$7 million in 2024. This indicates the increasing maturity of investors. According to Traxon, a company that provides comprehensive data and analysis on startups and private companies, India’s technology startups are expected to raise US$10.5 billion in 2025, which is 17 percent less than the US$12.7 billion raised in 2024 and four percent less than the US$11 billion raised in 2023. The number of rounds conducted for funding of US$100 million or more dropped to 14 from 19 in 2024.

However, the big deals included Arisha e Mobility (US$ 1 billion), Zepto (US$ 450 million) and Greenline (US$ 275 million). Despite low funding, cash generation witnessed a sharp rise, led by a resurgence in startup initial public offerings (IPOs). A total of 18 startups, including Lenskart, Groww, Meesho and Physicswala, listed on Indian stock exchanges and together raised Rs 41,000 crore (about US$4.5 billion). In comparison, Rs 29,000 crore (about US $ 3.2 billion) was raised in 2024.

“I would call 2025 the year of cash,” said Neha Singh, co-founder of Traxon. This was the year of initial public offerings (IPOs). It was a year in which venture capital (VC) and private equity (PE) backed companies entered the market in record numbers. This was a record year in itself. For example, if you look at funds like Peak XV and Elevation, you will see a lot of IPOs in their segment.”

Neha Singh said that funding in 2026 is expected to be higher than in 2025. “Indian startups have seen significant domestic growth,” said Prashant Singhal, head of markets and telecom at EY India. Out of about two lakh startups recognized by the Department for Promotion of Industry and Internal Trade, only 44,000 have joined this year. With over Rs 41,000 crore raised through 11 new unicorns and 18 public issues… India has now become the third largest startup ecosystem in the world after the US and China.

Artificial intelligence (AI) will remain a major topic of investment and development while the broader consumer market, including D2C brands and services, is a top topic that investors are excited about for 2026.