VC Deal Flow in India: What the Q3 2025 Numbers Tell Us About Investor Sentiment

CXO India Research tracked 214 venture capital transactions in India during Q3 2025, aggregating publicly available data with our proprietary deal intelligence network. The aggregate picture is one of selective recovery rather than broad exuberance. Total disclosed deal value grew 22% quarter-on-quarter, but this headline growth masks a significant bifurcation in the market. The bifurcation runs along two axes. The first is stage: early-stage activity (Seed through Series A) remained healthy, with median round sizes and valuations roughly consistent with 2024 levels. The middle market — Series B and C — showed signs of compression. Several rounds in this range were completed at flat or marginally down valuations relative to prior rounds, reflecting a recalibration of growth multiples that began in 2023 and is still working its way through the system. Late-stage deals of ₹500 crore and above were episodic and concentrated in a handful of sectors. The second axis of bifurcation is sectoral. AI-native companies — those where the AI capability is foundational rather than additive — attracted a disproportionate share of capital and commanded the most resilient valuations. Financial services technology, healthcare infrastructure, and B2B SaaS with demonstrable enterprise stickiness also saw consistent investor appetite. Consumer internet businesses without clear paths to profitability continued to face a cold reception. The message from India's most active investors is consistent: the question is no longer "can this company grow?" but "can this company grow profitably, and how quickly?"