Indian Startups Secure $1.65 Billion Funding in February 2025, Led by Oxyzo and udaan

In a robust sign of investor confidence, Indian startups collectively raised USD 1.65 billion (approximately Rs 14,418 crore) in February 2025, reflecting a 19.5% increase over January's total of USD 1.38 billion, as reported by Tracxn.

FY25 Funding Crosses USD 25 Billion Mark​

With this latest influx, funding for the fiscal year FY25 (April 2024–February 2025) reached USD 25.4 billion, spanning across 2,200 funding rounds. Despite the monthly gain, year-on-year funding saw a decline compared to the USD 2.06 billion raised in February 2024.

Bengaluru Tops Startup Funding Charts​

India’s startup hub, Bengaluru, maintained its leading position, attracting USD 353 million in February with a median round size of USD 2 million. Mumbai-based startups raised a comparatively lower total of USD 102 million but saw a higher median investment round size of USD 5 million.

Oxyzo and udaan Lead Funding Round Highlights​

Fintech platform Oxyzo emerged as the top fundraiser of the month, securing Rs 100 crore through conventional debt financing. Close behind, B2B online commerce platform udaan secured USD 75 million in a Series G equity round led by M&G Plc.

Other prominent funding rounds included investments into startups such as SpotDraft, Cashfree Payments, Zeta, and Geniemode.

Median Startup Valuation Holds Steady​

The median valuation for startups funded in February stood at USD 83.2 million, with the median investment round size reported at USD 1.92 million.

Key Business Acquisitions Mark February 2025​

Significant business acquisitions also shaped February’s startup landscape:

• Head Digital Works acquired gaming company Deltatech Gaming, known for its poker platform Adda52, in a deal worth Rs 491 crore.
• Bengaluru-based SaaS provider Perfios expanded its capabilities by acquiring fraud detection company Clari5.
• Motilal Oswal Alternate Investment Advisors (MO Alts) acquired a controlling stake in pharmaceutical firm Megafine Pharma for Rs 460 crore.

IPO Listings Highlight Investor Appetite​

February 2025 witnessed 16 IPO listings with a median market capitalization of USD 26.5 million. Notable companies that went public included Hexaware, AJAX, Ken India, Dr. Agarwal's Eye Hospital, and Royal Arc.

Prominent Investors and VC Firms​

Investor enthusiasm remained strong, with notable participation from prominent angel investors including Ritesh Agarwal, Anupam Mittal, Aman Gupta, and Peyush Bansal. Key venture capital firms such as Blume Ventures, Eximius Ventures, Unicorn India Ventures, Peak XV, Accel, and Nexus Venture Partners spearheaded major funding rounds.

Yearly Comparison: Funding Sees Modest Decline​

Throughout 2024, Indian startups had raised a total of USD 30.4 billion, a decrease of 6.5% compared to USD 32.5 billion secured in 2023, indicating a cautious yet sustained investment momentum.