Last Updated:
Fibonacci June 2025 report shows India’s VC AUM surged 5x since 2015, driven by domestic funds and first-time managers.
News18
VC’s share of private capital AUM (Asset Under Management) in India grew 5x from 24 percent in 2015 to 36 per cent in 2023, indicating rising confidence in VC as an asset class, according to Fibonacci June 2025 report. Meanwhile, private capital AUM jumped Rs 488k crore in 2025, reflecting a 2.2x growth from Rs 104k in 2015. 10 new VC funds are launched each year with an average size over Rs 300 crore. Meanwhile, VC AUM grew at the rate of 17 per cent CAGR or 3.4x to Rs 358k in 2023 from Rs 192k in 2019.
Venture capital refers to money invested in early-stage or growing companies (startups) that have high growth potential but are also risky. Venture capitalists (VCs) are the people or firms that provide this money. They invest in exchange for equity (ownership) in the company.
The report stated that the availability of dry powder (unallocated capital) also rose to Rs 4,900 crore in 2025 from Rs 100 crore in 2015.
Only the top performing VC funds, noted by the report, deliver outsized returns. Out of 169 schemes, 48 have returned at least 50 per cent to the investors, it added. Top quartile funds reported a Distributions to Paid-In (DPI) ratio of approximately 3x, compared to an average of 0.4x, underscoring the critical importance of quality startup selection.
India’s VC boom is being driven by first-time fund managers. Examples of AUM growth multipliers for such funds include 7x, 29x, and 42x over 7–17 years, highlighting the potential for rapid scale and significant returns.
Shift Towards Domestic-Only Funds
A clear shift toward domestic-only funds has emerged, aligning with Indian institutional capital expectations.
Significant amounts of venture capital funding came from domestic sources by 2025: institutions made up 27%, family offices and ultra-high net worth individuals (UHNI) made up 19%, funds of funds made up 15%, and other sources made up 12%. The percentage of funds with only domestic limited partners increased from 20% in 2023 to 39% in 2025.
With 67% of CAT I VC fund capital coming from domestic sources in 2025, family offices and UHNI investors were major players. Remarkably, 71% of family offices favored funding startups directly. Among direct investments, 46% were under INR 10 crore, 23% between INR 10–50 crore, 15% between INR 50–100 crore, and 15% above INR 100 crore.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
September 05, 2025, 14:43 IST
Read More
