Enterprise capital (VC) funding into Indian startups in Could touched the best degree to this point this yr. Two massive worth transactions of PB Fintech and Porter, along with regular move of mid-sized offers, contributed to this progress.
The overall VC funding for Could 2025 got here in at $1.45 billion in comparison with $1.31 billion to the same interval a yr in the past, registering a progress of 9.9%. Compared with April 2025, the rise was 103%, in response to YourStory Analysis.
As well as, this yr’s excessive of Could VC funding got here from simply 99 offers, whereas within the month of April the overall variety of offers was 119, whose whole worth was solely $716 million. The $218 million transaction of PB Healthcare and the $200 million deal worth of Porter supplied the enhance to funding in Could.
For the Indian startup ecosystem, that is excellent news as for the second time this yr, the overall VC funding on a month-to-month foundation has crossed the $1 billion mark. Beforehand, in March, the overall funding had crossed $1.14 billion. In any other case, the overall funding on a month-to-month foundation was hovering across the $700 million vary.
Startups hope the pattern continues sooner or later. Nonetheless, given the present macroeconomic atmosphere of commerce tensions and unsure coverage state of affairs, it’s fairly unlikely that there might be a gradual influx of VC funding and even a rise.
The final three weeks of Could noticed VC funding weekly hovering across the $100-200 million vary.
In Could, VC influx surprisingly remained constant throughout varied levels of funding—early, progress and late. All of the three levels of funding acquired an analogous sum of money, which is a uncommon incidence. Usually, the late stage of funding receives the best quantities. Surprisingly, the debt class of funding acquired $121 million within the month of Could.
The sectors that acquired essentially the most capital in Could have been logistics adopted by healthtech and fintech. This once more was a stunning growth because the fintech phase kind of topped the checklist earlier. Regulatory headwinds in fintech may clarify a number of the investor warning within the phase.
Cities elevating the best quantity of capital have been Delhi-NCR, adopted by Bengaluru and Mumbai. The highest three locations have all the time been occupied by these three cities with others like Hyderabad, Chennai or Pune receiving a specific amount of funding. By and huge there was no change on this pecking order.
Could was a great month within the Indian startup ecosystem when it comes to VC funding however corporations are cautious given the macroeconomic atmosphere.
Edited by Affirunisa Kankudti
