The Indian startup environment is still resilient as 2025 draws to a close. Deal activity increased despite a slight decline in overall capital inflows, indicating continued investor confidence across industries. Indian companies raised $127.2 million throughout the course of 21 agreements during the week of December 8–12. This is a 4% decrease in investment value from the previous week, but a significant increase in the number of deals from 18. The figures point to a market that is positive about supporting innovation at scale but cautious about check sizes.
Fintech Dominates Investor Attention Once Again
Fintech emerged as the clear winner of the week, attracting the highest share of capital. Three fintech startups collectively raised $46.1 Mn, marking a 34% increase from the $33 Mn invested in the sector in the previous week. Leading the charge was lending-focused fintech Fibe, which secured $35 Mn in a Series F round led by the International Finance Corporation. The round underscores continued global interest in India’s digital lending ecosystem, particularly platforms serving institutional and enterprise clients.
Skydo and Frex further strengthened fintech’s presence, highlighting sustained momentum in both B2B and consumer banking solutions despite a tighter funding environment.
Healthtech And Cleantech Shine With Big-Ticket Rounds
Healthtech saw strong traction, led by diagnostics startup Inito, which raised $29 Mn in a Series B round co-led by Bertelsmann India Investments and Fireside Ventures. The funding reflects growing investor confidence in at-home diagnostics and preventive healthcare models aimed at consumers.
Cleantech also made a strong showing, with Smart Joules raising $10 Mn in a Series B round led by SBI Ventures. As energy efficiency and climate-tech solutions gain urgency across industries, B2B cleantech startups continue to attract institutional capital focused on long-term sustainability and measurable impact.
Ecommerce Leads In Deal Volume
While fintech topped funding value, ecommerce recorded the highest number of deals this week. Seven ecommerce startups collectively raised $7.7 Mn, reinforcing investor appetite for differentiated D2C brands despite increasing competition. From wellness-focused Earthful to emerging labels like NeoSapien, Conscious Chemist and Toffee Coffee Roasters, early-stage funding continued to flow into niche, brand-led consumer plays.
Fireside Ventures emerged as the most active investor of the week, backing both Inito and Earthful, further cementing its position as a key supporter of consumer and health-focused startups.
Early-Stage Activity Sees A Temporary Dip
Seed-stage funding slowed during the week, with six startups raising a total of $5.9 Mn—down 63% compared to the previous week. While the decline indicates investor selectivity at the earliest stages, the presence of multiple pre-seed and seed rounds across AI, healthtech and fintech suggests that capital deployment has become more deliberate rather than dormant.
AI startups such as SuperBryn, Faraday, Emergent and Whilter AI continued to attract strategic backing, underlining growing interest in application-layer AI models catering to both enterprises and consumers.
New Funds Signal Long-Term Confidence
Beyond individual deals, several fund announcements reinforced long-term optimism in India’s startup landscape. Bengaluru-based BYT Capital launched its maiden deeptech fund with a corpus of INR 180 Cr, while IIT Bombay’s incubator SINE unveiled the Y-Point Venture Capital Fund targeting INR 250 Cr.
Energy-focused Transition VC closed its maiden INR 700 Cr fund, Centre Court Capital completed its INR 410 Cr sports and gaming fund, and IAN Group marked the final close of its $100 Mn IAN Alpha Fund. These launches point to a robust pipeline of capital for early and growth-stage startups heading into 2026.
M&A, IPOs And Ecosystem Developments Add Buzz
The broader ecosystem also saw significant activity. Honasa Consumer announced plans to acquire a 95% stake in men’s grooming brand Reginald Men for INR 195 Cr, strengthening its portfolio in the personal care segment. Wakefit’s IPO closed with a 2.5X oversubscription, while SEBI cleared Leap India’s INR 2,400 Cr IPO.
With funding stabilising, new funds coming online, and capital markets reopening, the Indian startup ecosystem appears well-positioned to carry this momentum into the new year.
