Foreign VC Funds Bet Big on India in 2025 While overall deal volumes have moderated, the size of individual investments has grown, underscoring the new mantra of 'fewer but bigger' bets.
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Foreign venture capital funds have sharpened their focus on India in 2025, signaling renewed conviction in the market after two years of global caution. According to Venture Intelligence, Indian startups raised approximately USD 5.7 billion in H1 2025, with foreign funds leading a majority of the largest rounds.
While overall deal volumes have moderated, the size of individual investments has grown, underscoring the new mantra of 'fewer but bigger' bets.
Quarterly data reflects this trend. KPMG recorded USD 3.5 billion invested across 355 deals in Q2 2025, marking a sequential uptick from Q1. The rise highlights that international capital, though more selective, is re-entering with renewed appetite for late-stage growth companies.
Several headline-making transactions in 2025 demonstrate the continued role of global investors in shaping India's startup landscape.
PB Healthcare raised USD 218 million in seed funding, led by US-based General Catalyst. The unusually large early-stage bet signals confidence in building an integrated healthcare ecosystem combining insurance and hospital infrastructure. Nothing, the consumer electronics startup founded by Carl Pei, secured a USD 200 million Series C led by Tiger Global, reaffirming foreign VC enthusiasm for globally ambitious consumer brands emerging from India.
CureBay, a hybrid healthtech provider, closed a USD 21 million round with participation from Bertelsmann India Investments, highlighting how foreign funds are targeting scalable health delivery models.
Spinny, the used-car retail platform, attracted over USD 160 million in combined rounds, with foreign backers doubling down as the company builds out scale and prepares for potential exit routes. Groww, the wealth-tech platform, also saw offshore-led investment from Iconiq and GIC, bolstering its runway as it eyes a public-market debut.
These deals confirm that foreign VCs remain most active in consumer, fintech, and healthcare segments, areas offering both domestic depth and global scalability.
Unlike the exuberance of 2021–22, foreign funds in 2025 are investing with stricter discipline. Governance, profitability, and exit visibility are at the core of investment decisions.
At the same time, optimism persists. Foreign capital allocators continue to see India as an innovation hub with the ability to create global leaders. A phrase heard frequently across industry commentary - "India is a proving ground for global consumer and AI companies", encapsulates why foreign funds continue to write big cheques despite a more cautious environment.
