Indian Startup Ecosystem Sees Growth and Change in Q3 2025
The Indian startup ecosystem witnessed a mix of growth and change in Q3 2025. Rajesh Mane and Ankit Jain kicked off the quarter by launching Spotlight Strategic Partners, an early-stage focused VC firm with a maiden fund of INR 200 Cr. Meanwhile, startups raised $2.1 Bn across 240 deals, marking a 38% decline from the previous year.
Spotlight Strategic Partners joins a growing list of VC firms setting up shop in India. The firm, launched by Rajesh Mane and Ankit Jain, aims to back early-stage startups with its maiden fund of INR 200 Cr.
The quarter saw a shift in investment trends. While startups raised $2.1 Bn, a 38% decline from the previous year, the average deal size edged up slightly to $3 Mn. Unique investor participation also rose by 7% YoY and 4% QoQ to 676. Stride Ventures retained its position as the most active investor, backing 34 startups including Zetwerk, Infra.Market, and SUGAR Cosmetics.
Other notable fundraisers included Kettleborough VC, which launched its second fund with a target corpus of INR 80 Cr and marked the first close at INR 35 Cr. Deeptech-focused Speciale Invest also closed its third fund, raising INR 600 Cr. Funds worth $2.5 Bn were launched in the quarter, with investors launching funds worth over $9 Bn in the first nine months of 2025.
Q3 2025 saw a decline in the total capital raised by Indian startups but an increase in the average deal size and unique investor participation. The launch of new VC firms like Spotlight Strategic Partners and the successful fundraising of established firms indicate continued interest in the Indian startup ecosystem. As the quarter closed, Atomic Capital announced the final close of its maiden fund at INR 400 Cr, further bolstering the investment landscape.
