India’s startup ecosystem has witnessed a surge in investment activity in the first half of 2025, with venture capital (VC) firms and angel investors driving innovation across sectors like fintech, deep-tech, and AI. Despite global economic uncertainties, Indian startups raised over $6 billion in H1 2025, according to industry reports. Below, we spotlight the 10 most active startup investors in India during this period, based on deal volume, strategic impact, and contributions to the ecosystem. These investors have played a pivotal role in fueling India’s rise as a global hub for innovation.
Table of Contents
1. Sequoia Capital India
Sequoia Capital India remains a dominant force, participating in over 20 deals in H1 2025. With investments in fintech unicorn Cred and healthtech startup HealthifyMe, Sequoia has focused on scaling high-growth ventures. Its Surge program, designed for early-stage , backed six new companies, emphasizing AI and SaaS. “We’re betting on founders solving India-specific problems with global potential,” said a Sequoia spokesperson.
2. Accel India
Accel India closed 18 deals, targeting early-stage and Series A rounds. Notable investments include deep-tech startup Unibose Technology and edtech platform Scaler. Accel’s hands-on mentorship and global network have made it a preferred partner for founders. The firm’s focus on AI-driven solutions and sustainability reflects its alignment with emerging trends.
3. Blume Ventures
Blume Ventures, known for its founder-first approach, backed 15 startups, with a strong focus on climate tech and consumer internet. Investments in electric mobility startup Yulu and agritech firm AgroStar highlight its commitment to sustainable innovation. Blume’s Fund IV, raised in 2024, has been instrumental in its active deal-making.
4. O2 Angels
O2 Angels emerged as a key player in deep-tech, leading the Rs 5.5 crore pre-Series A round for Unibose Technology, a hazard-zone robotics startup. With 12 deals, the angel network has prioritized high-impact sectors like robotics and AI. Its ability to connect startups with industry experts has amplified its influence.
5. Prosus
Prosus, a global tech investor, made significant moves in India’s fintech space, injecting INR 302 crore into PayU India’s credit business. The firm participated in 10 deals, focusing on payments, ecommerce, and edtech. Prosus’ deep capital reserves and strategic acquisitions, like Mindgate Solutions, underscore its long-term bet on India.
6. Nexus Venture Partners
Nexus Venture Partners closed 11 deals, with investments in SaaS startup Zluri and healthtech firm Medikabazaar. Known for backing scalable tech ventures, Nexus has emphasized AI and enterprise solutions. Its portfolio companies raised follow-on rounds at strong valuations, reflecting Nexus’ knack for picking winners.
7. Tiger Global Management
Tiger Global, despite a global slowdown in VC activity, remained active with nine deals in India. Its investments in quick-commerce platform Zepto and neobanking startup Jupiter highlight its focus on consumer-facing tech. Tiger’s rapid deal-closing ability continues to make it a formidable player.
8. Kalaari Capital
Kalaari Capital backed eight startups, with a focus on women-led ventures and D2C brands. Investments in beauty brand Plum and edtech startup Classplus showcase its diverse portfolio. Kalaari’s Darpan program, which supports early-stage founders, has been a key driver of its activity in H1 2025.
9. Chiratae Ventures
Chiratae Ventures participated in nine deals, targeting fintech and deep-tech. Its investment in Lenskart’s Series J round and healthtech startup Qure.ai reflects its focus on growth-stage ventures. Chiratae’s deep industry insights and mentorship have solidified its reputation as a trusted partner.
10. 3one4 Capital
3one4 Capital, a Bengaluru-based VC, closed seven deals, with a focus on early-stage startups in fintech and SaaS. Investments in neobank Open and AI startup NxtGen demonstrate its commitment to disruptive technologies. The firm’s hands-on approach has helped portfolio companies scale rapidly.
Trends Shaping Investment Activity
The first half of 2025 saw investors prioritize sectors like AI, fintech, and climate tech, driven by India’s digital infrastructure and supportive policies. The government’s Rs 1 lakh crore Research Development and Innovation (RDI) scheme, with Rs 20,000 crore allocated for FY26, has spurred deep-tech investments. Fintech continues to dominate, with UPI processing over 18 billion transactions monthly, creating opportunities for platforms like PayU India.
Investors are also focusing on profitability and sustainable growth, a shift from the high-valuation frenzy of previous years. “Valuations are rationalizing, and founders with strong unit economics are attracting capital,” said an Accel India partner. Early-stage deals accounted for 60% of investments, reflecting confidence in India’s next wave of startups.
Challenges and Opportunities
Despite the optimism, challenges persist. Global macroeconomic headwinds, including rising interest rates, have made investors cautious. The delay in IPOs, such as PayU India’s planned 2026 listing, reflects a focus on profitability over rapid expansion. Regulatory complexities, particularly in fintech, require startups to navigate stringent RBI guidelines.
However, India’s startup ecosystem remains resilient. The country’s 1,200+ universities and growing talent pool in AI and tech are producing innovative founders. Investors like Sequoia and Blume are doubling down on mentorship to help startups scale globally, while firms like Prosus leverage their international networks to open new markets.
Impact on India’s Startup Ecosystem
The active participation of these investors has bolstered India’s reputation as a global innovation hub. Startups backed by these firms are creating high-skill jobs, with cities like Bengaluru, Mumbai, and Chennai emerging as deep-tech hubs. Investments in climate tech and AI are also aligning with India’s sustainability goals, contributing to economic and social impact.
For instance, Unibose Technology’s hazard-zone robotics, backed by O2 Angels, is reducing workplace risks in industries like petroleum. Similarly, PayU India’s credit business, fueled by Prosus, is driving financial inclusion for SMBs. These investments highlight the transformative potential of India’s startup ecosystem.
Looking Ahead
As India’s startup ecosystem matures, these 10 investors are setting the pace for innovation and growth. Their focus on AI, fintech, and sustainable technologies aligns with global trends, positioning India as a leader in the next wave of digital transformation. With supportive government policies and a vibrant founder community, the second half of 2025 promises to be equally dynamic.
The success of these investors lies in their ability to identify high-potential startups and provide strategic guidance. As India’s funding is projected to surpass $10 billion in 2025, these players will continue to shape the future of innovation, driving economic growth and global competitiveness.
also check out: India’s Top 5 Startup Funding Platforms Empowering Early-Stage Founders in 2025
Last Updated on Tuesday, July 15, 2025 12:35 pm by Swayam Sharma
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