From $1.7B to $745Mn: India’s Startup Funding Just Crashed in April 2025

India’s startup funding ecosystem saw a dramatic decline in April 2025, with total capital inflow dropping to just $745 million—a steep fall from the $1.76 billion recorded in January, according to data from Entrackr. The 58% drop reflects a cooling investor appetite, particularly for large-scale deals, and a shifting focus toward public markets.

In total, Indian startups closed 116 funding rounds during April. Of the $745 million raised, $562 million was driven by 23 growth- and late-stage deals, while early-stage startups contributed $186 million across 77 rounds. Details of 16 deals remained undisclosed.

Month-over-Month and Year-on-Year Trends 

Compared to March’s $1.14 billion, April witnessed a 34.65% decline in funding. On a year-over-year basis, this was the weakest April in five years, signalling ongoing turbulence in the funding climate.

Major Growth-Stage Highlights 

Leading April’s growth-stage activity was used-car platform Spinny, securing $131 million in a Series E round. Other major deals included:

• Juspay – $60M (Series D)

• Rebel Foods – $25M (Series G)

• Tonbo Imaging – $21M (Series D)

• Uniqus Consultech – $20M (Series C)

Key Early-Stage Funding Deals 

Despite the slowdown, several early-stage startups raised substantial funding:

• Kult (Beauty Tech) – $20M

• Aerem (Clean Energy) – $12M

• RapidClaims (Healthtech) – $11M

• Xindus (Cross-border Logistics) – $10M

• SigIQ.ai (Edtech) – $10M

• Optimized Electrotech – $6M

• The Bear House (Fashion) – $5.8M

M&A Activity in April 

April also brought significant M&A movement:

• Delhivery acquired Ecom Express in a $166 million deal.

• Findi snapped up BANKIT for $18.7 million.

• Accenture and Ampivo AI made undisclosed acquisitions in the deeptech and AI segments.

• In edtech, Arihant Academy bought Carmel Classes for $1.2 million, and Creativefuel acquired MissMalini Entertainment for $0.69 million.

Other noteworthy acquisitions involved players like CARS24, Jaipuria Group, and NABARD.

Trends to Watch 

• VC Funds Still Going Strong: Despite the dip in startup fundraising, venture capital firms are gearing up. Accel, Bessemer, and A91 Partners collectively raised $4.2 billion for India-centric investments. Peak XV is also in the process of launching a $1.2–1.4 billion fund.

• IPO Plans Shrinking: Market volatility has forced startups like Urban Company and Ather Energy to scale back their IPO ambitions. Urban Company revised its issue size down to ₹1,900 crore from ₹3,000 crore, while Ather reduced its target from ₹3,100 crore to ₹2,981 crore.

• Edtech’s Quiet Resurgence: The battered edtech sector is showing signs of recovery. Unacademy is nearing profitability, and PhysicsWallah is not only IPO-bound but also considering acquisitions, including Drishti IAS and Sarrthi IAS.

• Flat and Down Rounds: Several companies raised capital at flat or lower valuations. While Spinny and Euler Motors saw no valuation growth, Pratilipi faced a significant markdown of over 60%.

Conclusion 

While April’s numbers indicate a clear funding slump, the broader narrative suggests recalibration rather than decline. A rise in Series A activity signals growing momentum among younger startups, even as seasoned players like Ather prepare for the public markets. The ecosystem, though cautious, appears to be laying the groundwork for the next phase of innovation and growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.