March 2025: Dynamic Changes in Investments Landscape

The Indian private markets witnessed a dynamic funding landscape in March 2025.

With a total of ₹9,916 crore raised across 113 deals, the month saw a mix of large-scale investments, shifts in investor behavior, and a surprising surge in Tier 2 & 3 city funding.

Here’s a comprehensive breakdown of the key trends shaping private market investments this month.

Which Cities Got the Most Funding?

The usual suspects – Delhi NCR, Bengaluru, and Mumbai – continued to dominate private market deal activity, collectively raising over ₹6,500 crore across 84 deals.

Title - March 2025: City-Wise Deals

Description - Delhi NCR, Bengaluru, and Mumbai dominate the Indian private market landscape, collectively accounting for over ₹6,500 crore in valuation across 84 companies. Smaller cities like Paonta and Jaipur also contribute, showcasing the widespread reach of entrepreneurial activity.

Additional Notes:
Tier 1 cities: Bangalore, Chennai, Delhi (Gurugram, Noida, Ghaziabad), Hyderabad, Kolkata, Mumbai(Thane), Pune, and Ahmedabad.

Tier 2,3 - rest all cities

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Delhi NCR led with ₹2,790.04 crore raised across 37 deals.
Bengaluru followed with ₹2,047 crore across 28 deals.
Mumbai secured ₹1,670 crore across 19 deals.
Other notable cities included Hyderabad (₹1,351 crore), Paonta (₹1,050 crore), and Jaipur (₹611.52 crore).
Smaller cities like Indore, Ahmedabad, Haveli, and Pune also contributed, reflecting the broadening reach of venture capital in India.

How Many Deals Happened?

A total of 113 deals were closed in March 2025, reflecting a 4.2% decline from 118 deals in March 2024 but a 14.9% increase month-over-month from February 2025’s 99 deals.

Title - March 2025: Deal Volume
Description - March 2025 recorded 113 deals, reflecting a 4.2% decline year-over-year from 118 deals in March 2024 and a 14.9% increase month-over-month from 99 deals in February 2025.

Note: This does not include secondary and debt deals of unlisted Indian companies. Please note that 109 of our tracked deals were sourced from press reports as the corresponding MCA filings have not been made yet.

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Biggest Funding Deals in March 2025

This month saw some major funding rounds, with three deals exceeding ₹1,000 crore:

Title - March 2025: Top 3 Deals (₹ cr)
Description - Darwinbox led the funding charts with ₹1,218.84 crore raised, followed closely by ONGC Green at ₹1,200 crore and Tirupati Medicare at ₹1,050 crore.

Note: This does not include secondary and debt deals of unlisted Indian companies. Please note that 109 of our tracked deals were sourced from press reports as the corresponding MCA filings have not been made yet.

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Darwinbox – ₹1,218.84 crore
ONGC Green – ₹1,200 crore
Tirupati Medicare – ₹1,050 crore (A major Tier 2 city deal in Paonta)

These large deals highlight continued investor interest in enterprise tech, sustainability, and healthcare.

Who Invested the Most?

Accel India led March’s investment activity, closing 5 deals. Blume Ventures and Inflection Point Ventures followed closely with 4 deals each.

Title - March 2025: Top Investors
Description - Accel India led the deal activity with 5 investments, while Blume Ventures and Inflection Point Ventures followed closely with 4 deals each.

Note: This does not include secondary and debt deals of unlisted Indian companies. Please note that 109 of our tracked deals were sourced from press reports as the corresponding MCA filings have not been made yet.

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Investor Type Deal Volume

Venture Capital and Private Equity firms dominated deal activity in March 2025, recording 76 investments, a sharp rise from 51 in February 2025.

Angel investor participation dropped slightly to 24 deals from 29 in February, indicating a shift in early-stage funding dynamics. Family offices, however, saw a modest increase, contributing 6 deals, up from 5 in February.

Tier 1 vs. Tier 2 & 3 Cities

Tier 1 cities (Delhi NCR, Mumbai, Bengaluru, Hyderabad, Chennai, Pune, Kolkata, Ahmedabad) dominated funding but saw a notable decline:

Title - March 2025: Funding Across Tier 1, 2 & 3 Cities (₹ Cr)
Description - Tier 1 cities dominated fundraising in March 2025 with ₹8,017 crore raised, though this marked an 18.3% decline from ₹9,817 crore in February 2025. Tier 2 & 3 cities saw a significant jump, raising ₹1,898.93 crore - up from ₹513 crore in the previous month. This spike in Tier 2,3 funding was largely driven by the ₹1050 crore deal of Tirupati Medicare Limited in Paonta.

Note: This does not include secondary and debt deals of unlisted Indian companies. Please note that 109 of our tracked deals were sourced from press reports as the corresponding MCA filings have not been made yet.

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Tier 1 cities raised ₹8,017 crore, an 18.3% drop from ₹9,817 crore in February 2025.
Tier 2 & 3 cities surged to ₹1,898.93 crore, up from ₹513 crore in February, largely driven by Tirupati Medicare’s ₹1,050 crore round in Paonta.

Average Deal Size

The average deal size fluctuated across city tiers:

Tier 1 cities had an average deal size of ₹84 crore, down from ₹114 crore in February.
Tier 2 & 3 cities saw a dramatic rise to ₹112 crore from ₹39 crore, underscoring the growing confidence in smaller city-based companies.

Who’s Investing Where?

Investor behavior continued to show clear patterns across city tiers:

Title - March 2025: Investor Type by City Tier
Description - In March 2025, Venture Capital and Private Equity firms dominated investments across city tiers, with 64 deals in Tier 1 cities and 12 in Tier 2 & 3 cities. Angel investors were more active in Tier 1 cities with 18 deals, while Tier 2 & 3 cities saw 6 angel-led deals. Family offices remained exclusive to Tier 1 cities, contributing 6 deals.

Note: Any funding deal can have participation from more than one type of investors (angel investor, family office etc) resulting in deals being counted more than once in this analysis.

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VC/PE firms dominated investments, leading 64 deals in Tier 1 cities and 12 in Tier 2 & 3 cities.
Angel investors closed 18 deals in Tier 1 cities, compared to 6 in smaller cities.
Family offices remained exclusive to Tier 1 cities, contributing 6 deals.

Conclusion

March 2025 reaffirmed key investment trends while introducing new dynamics:

Tier 1 cities continue to lead but face increasing competition from emerging hubs.
Tier 2 & 3 cities saw a record surge in funding, marking a shift in investor confidence.
Large-ticket deals remain a driving force, especially in enterprise SaaS, sustainability, and healthcare.

As we step into the next quarter, it will be crucial to watch if Tier 2 & 3 growth is a sustainable trend or a temporary spike driven by a few major deals. Stay tuned for more insights in the coming months!

Stay tuned for more in-depth analyses and insights on the top private market deals, brought to you by PrivateCircle Research.