VC war chest swells, deployment lags

While funds are seeking $9 billion in capital, only a fraction has closed so far, even as industry dry powder is estimated at $100 billion, say analysts

- Salman SH

India-focused venture capital (VC) funds raised about $2.5 billion across 20 new vehicles in calendar 2025, outpacing the $1.6 billion secured via 16 funds in 2024 and $1.9 billion across 19 funds in 2023, according to Venture Intelligence.

Although the pace of final closes has ticked up only marginally, more managers are back in the market to raise funds, in an indication that investors expect deal activity to gain momentum over the next few years.

According to Venture Intelligence, Accel India, Peak XV Partners and Blume Ventures have been the three most active India-based VC investors in 2025, with 43, 41 and 32 deals, respectively, followed by Info Edge, DeVC India and Elevation Capital, each closing at 24 to 28 deals.

Including green-shoe options and full target sizes, India-focused VC and private equity funds launched or in the market in 2025 were seeking $9 billion in total. But so far only around $2.5 billion was closed, says a July-September Inc42 fundraising report. A green-shoe option is a clause that allows a company to raise additional capital beyond its original target if investor demand is high.