The 2025 edition of Venture Intelligence’s India VC Landscape Report offers a comprehensive update on India’s rapidly evolving venture capital (VC) ecosystem. Recent years, particularly post 2021-22, have witnessed significant shifts in exit avenues, fund formation, the deepening of both public and private markets, and the emergence of new domain priorities with DeepTech taking centre stage. YourNest was among the VCs who supported the research and publication of the report.
IPOs and Exits: A Maturing Landscape
The report mentions that India has distinguished itself globally with the growth of domestic capital markets enabling VC exits – a development that makes it easier to attract international funds. The domestic IPO market has become a reliable and attractive exit route, highlighted by the successful listings of startups such as Swiggy and FirstCry in 2024, and an uptick in the number of venture-backed IPOs. In 2024, India led the world with 330 IPOs, including 11 from VC-backed startups – a clear demonstration of market maturity and increasing depth.
Strategic acquisitions have also surged, with deals such as the US$ 500 mn acquisitions of Minimalist (providing a 10x return for its first VC backer) and Wingify showing the increasing interest of Indian conglomerates and global players in innovation-driven startups. Secondary sales, buybacks, and strategic buyouts are among the exit routes beyond IPOs – a testament to the maturing ecosystem.
Rise of Homegrown Funds
A significant trend is the ascendancy of homegrown fund managers – the primary theme of Venture Intelligence’s report. Many international VC units have localised or spun out, making the top active investor roster more Indian than a few years ago. More than a dozen Indian VC firms – including YourNest – have raised their third funds, with several achieving the ‘Franchise Fund’ milestone of four or more closes, underlining their demonstrated returns and staying power.
Domestic Limited Partners (LPs) – particularly through government-sponsored Funds of Funds (like SIDBI which has invested in every one of our funds, and NIIF, our anchor investor in Fund III) – have become dominant sources of capital. Family offices, especially those from traditional business families and successful startup founders, have sharply increased: they now number over 300 in India. Domestic capital today forms half or more of new VC fund corpuses, anchoring the ecosystem firmly in local hands.
Power Law of Returns and Deep Tech Bets
The ‘Power Law’ of VC – returns where a small proportion of portfolio companies deliver the majority of gains – applies strongly in India. Leading homegrown VCs (e.g., Blume Ventures, India Quotient, YourNest) have shared data showing how a handful of investments, often falls in technology or DeepTech, account for the lion’s share of returns. For example, YourNest’s Fund I saw 4 companies account for 85% of total valuations, with notable startups including Thriwe (40x) and Opkey (11.5x).
DeepTech, involving sectors such as AI, robotics, quantum computing, advanced IoT, and health tech, stands out as a key focus area for several top-tier funds: a reaffirmation of our pioneering investments in this sector. Unlike more easily imitated consumer models, DeepTech startups require strong IP, domain specialisation, and substantial R&D; at the same time, they offer outsized outcome potential for both investors and the broader innovation ecosystem. More importantly, investing in DeepTech requires what we call ‘patient capital’ i.e. a shift away from accelerated returns to longer-term commitment that eases the pressure of frequent fundraise on founders.
Spotlight on YourNest: India’s DeepTech Pioneer
The report reaffirms YourNest Venture Capital as a major champion of DeepTech among Indian VCs. Established in 2011 and based in Gurgaon, YourNest is India’s leading early-stage DeepTech fund. Across three funds, YourNest manages US$175 million, and has committed to consistently high returns: Fund I delivered a 4.7x MOIC, Fund II 3.7x, and Fund III a promising 1.8x (with IRRs up to 29.2%). Ten exits in the last five years – the likes of Opkey (16.1x with a partical exit), Uniphore (15.5x), and UptimeAI (8.7x) – demonstrate a proven ability to turn DeepTech IPs into value and liquidity for LPs.
YourNest’s investment philosophy prioritises high-potential, IP-led B2B startups within India’s fast-growing DeepTech domains. The portfolio spans AI software, cybersecurity, robotics, non-medical biotechnology, batteries, autonomous vehicles, quantum computing, and even space technology. Selected portfolio stars include Miko (robotics), Dozee (HealthTech), Exponent Energy (batteries/EV), QpiAI (AI), EtherealX (aerospace), Induz (BioTech), ThinkMetal (advanced materials) and CronAI (edge AI).
YourNest has also pioneered innovative investment programs – such as SOAR in 2020 and Velocity in 2024 – that have offered startups fast-track capital plus expert domain support, strengthening its leadership in DeepTech funding.
The report also highlights key differentiators for YourNest:
- Consistent performance: Top-quartile returns (with third-party validation from agencies like CRISIL and Preqin)
- Eco-systemic roots: Early participation by anchor investors such as NIIF and SIDBI
- Responsible nurturing: Emphasis on responsible stewardship, founder support, and sustainable value creation.
DeepTech’s Place in India’s New VC Era
DeepTech is poised to drive the next phase of India’s VC-powered growth – as established consumer internet and e-commerce categories reach maturity, and India’s startup ambitions shift toward world-beating, IP-rich companies. Sectors such as SaaS, cybersecurity, EVs, and BioTech are expected to anchor selective M&A activity and future IPOs, providing viable exit routes for VC funds where giant public listings may not be applicable.
The rise of secondary funds and new types of liquidity solutions (e.g., continuation vehicles, fund recapitalisations) also widens the exit landscape for DeepTech bets, offering flexibility for funds and founders alike as they navigate scale, competitive markets, and the capital-intensive nature of DeepTech innovation.
Conclusion
India’s VC landscape in 2025 is marked by greater domestic ownership, more frequent and lucrative exit avenues (IPOs, M&As), robust public market participation, and a new focus on deep innovation – especially Deep Tech. Funds such as YourNest are at the vanguard of this transformation, successfully translating IP and R&D into investor returns and raising the bar for technology-driven entrepreneurship in India. The stage is set for the next wave of Deep Tech unicorns and category leaders—rooted in local talent, global ambition, and an ecosystem built to last.
Venture Intelligence’s comprehensive India VC Landscape Report 2025 can be downloaded here.