Top 10 Venture Capital Firms in India 2025
Investment funds that help investors seeking private equities in startups, small, and mid-sized enterprises possessing strong growth potential, by managing their money are known as Venture Capital Funds (VCF). Venture Capital Funds (VCF) are institutions that are dedicated to funding new ventures and are regulated by the guidelines issued by the Securities and Exchange Board of India (SEBI).
- Though there is a high-risk involved in funding new projects, the investors are eager to do so because they anticipate high returns on the investment.
- Venture Capital Fund ensures that the money of the investors is used to fund projects which have a potential to grow, and the money provided in the process is known as Venture Capital.
- Venture capital funds are given out based on the company's assets, size and stage of product development. Since these firms in question are usually start-up/ small in size, they are said to have high-risk/high-return profiles.
Features of Venture Capital Funds
- The main focus of VCFs is on early-stage investment but sometimes, it can also involve expansion-stage financing.
- Often, equity stakes of the enterprises or companies that are funded by the VCFs are purchased by the VCFs.
- In addition to the money, VCFs also bring the expertise and experience of the investors, which will help the business grow even more.
- Sometimes the VCFs also help in developing new products/services and acquire latest technologies that will help the company to improve efficiency.
- The networking opportunities that VCFs provide are by far their greatest asset. With well-connected and affluent investors supporting the business, it will quickly experience phenomenal growth.
- VCFs hold the authority to influence the decisions of the enterprises they are investing in.
- In an attempt to reduce the risks associated with seeding new ventures, VCFs put money into a range of early-stage companies in the hope that one or more of them will see rapid expansion and provide them with a sizable return.
Types of Venture Capital Funds
Venture Capital Funds are classified on the basis of their utilization at different stages of a business. The 3 main types are early stage financing, expansion financing, and acquisition/buyout financing.
Early stage financing
There are three categories for financing expansion: bridge, second stage, and third stage. Companies are granted access to second and third stage funding to start their expansion efforts. Financial assistance known as "bridge financing" is provided to businesses who use initial public offerings (IPOs) as their primary business strategy.
Expansion financing
Expansion financing is classified into second stage financing, bridge financing, and third stage financing. The second stage and third stage financing are given to companies so that they can start their expansion process in a major way. Bridge financing is offered to companies in the form of monetary support when they employ Initial Public Offerings (IPO) as a principal business strategy.
Acquisition or buyout financing
The categories that fall under acquisition or buyout financing are acquisition finance and leveraged buyout financing. Acquisition financing helps a company that requires money to buy another company or sections of a company. When a company's management group wants to purchase a specific product from another company, leveraged buyout funding is needed.
Top 10 Venture Capital Firms in India
The Indian startup ecosystem highly relies on venture capital funding. However, many entrepreneurs are confused, hesitant, and sometimes find it difficult to ascertain which investors are reliable.
Therefore, we have made a list of the top 10 venture capital firms in India and also provided some basic information about these firms below:
- Accel Partners
- Blume Ventures
- Sequoia Capital India
- Nexus Venture Partners
- Helion Venture Partners
- Venture East
- Inventus Capital Partners
- Fidelity Growth Partners
- Qualcomm Ventures
- IDG Ventures India
Accel Partners
With over 3 decades of experience in the field of venture capital financing, Accel Partners have helped hundreds of companies evolve. Its vision is to provide assistance to the global entrepreneur community.Investment structure - Invests between $0.5 million and $50 million.
Industries - Infrastructure, Storage Technologies, Data-Driven technologies, Cloud-based services, Mobile and Software, SaaS, Biotechnology, Healthcare, Education.Startups funded - BookMyShow, Urbanclap, Swiggy, Rentomojo, Freshdesk, Myntra, Commonfloor, Flipkart, BabyOye, TaxiForSure.
Blume Ventures
Termed as 'Founder's VC', Blume Ventures helps startups with funding, mentoring, and support. It was founded in 2011 and has over 60 active companies.Investment structure - Invests between $0.05 million to $0.3 million in the seed stage.
Industries - Telecommunications Equipment, Mobile Applications, Data Infrastructure, Logistics, E-commerce, Fin-Tech, Hospitality Services, Gaming.Startups funded - HealthifyMe, Instamojo, TaxiForSure, Cashify, Chillr, Explara, EKI Communications, Audio Compass, Exotel, Printo.
Sequoia Capital India
An affiliate of Sequoia Capital, a venture capital firm with headquarters in California, is Sequoia Capital India. It specialises in supporting businesses, seed, early, series-A funding, etc.Investment structure: $100,00 to $1 million is invested in the seed stage, $1 million to $10 million is invested in the early stage, and $10 million to $100 million is invested in the growth stage.
Industries - Financial, Outsourcing, Public Sector, Energy, Healthcare, Technology, Mobile, Enterprise Software.Startups funded - Practo, JustDial, Zomato, OYO Rooms, Groupon India, MobiKwik, Grabhouse, Knowlarity, iYogi, BankBazaar.
Nexus Venture Partners
This venture capital firm looks for passion, innovation, feasibility, and differentiability in enterprises and has a decade of experience in guiding entrepreneurs.Investment structure - Invests between $0.5 million and $10 million in the early growth stage. In their seed program, they invest up to $0.5 million.
Industries - Data Security, Infrastructure, Storage, Rural Sector, Mobile, Agribusiness, Energy, Media, Technology, Consumer and Business Services, Food, Tourism, Lifestyle.Startups funded - Stayzilla, Craftsvilla, Delhivery, Snapdeal, Komli, Housing.com, PubMatic.
Helion Venture Partners
Based in Mauritius, Helion Venture Partners aids entrepreneurs to develop a strategy to accomplish their plan in the marketplace. Apart from financing startups, Helion also helps companies to solve complex business problems.Investment structure - Invests between $2 million to $10 million.
Industries - Retail services, Outsourcing, E-commerce, Consumer Services, Mobile, Advertising, Healthcare, Enterprise Software, Travel and Tourism, Internet, Education.Startups funded - MakeMyTrip, Yepme, NetAmbit, PubMatic, RedBus, SimpliLearn, EzeTap, Wooplr.
Venture East
It is a venture capital firm that focuses on Indian startups. With over 15 years of experience, Venture East prefers to invest in fresh, strange, and potential ideas while also helping them to establish and be competent in the market.Investment structure - Invests between $1 million to $10 million in multiple rounds.
Industries - Financial Services, Digital Healthcare, Internet of Things (IoT), Education, E-commerce, Life Sciences, Information Technology.Startups funded - Portea, Seclore, Goli Vada Pav, Little Eye Labs, 24 Mantra.
Inventus Capital Partners
This venture capital firm primarily invests in technology-based startups and was founded in 2007. It is managed by industry veterans and entrepreneurs,Investment structure - Invests between $1 million to $2 million in the first venture round and with the growth in business, it invests between $0.25 million to $10 million.
Industries - Hotels, Restaurants and Leisure, Healthcare, Information Technology, Telecommunications, Media, Hardware, and Equipment.Startups funded - CBazaar, Poshmark, Savaari, Poshmark, PolicyBazaar, Insta Health Solutions.
Fidelity Growth Partners
Fidelity Growth Partners is the investment arm of Fidelity International Limited and has been rechristened as Eight Roads Ventures. It has invested in many sectors including technology, healthcare and life sciences, etc. since 2008 and focuses on the Indian startup ecosystem.Investment structure - Invests between $10 million to $50 million.
Industries - Energy and Industrial Technology, Food and Agriculture, Data and Business Services, Education and Skills Development, Consumer and Enterprise Technology.Startups funded - Yebhi, NetMagic, Coastal Projects, Milk Mantra Dairy Pvt. Ltd.
Qualcomm Ventures
This venture capital firm was founded in 2000 and has more than 140 active portfolio companies under its belt. It is the private equity arm of Qualcomm Incorporated and has focus on investing in automotive, data center, mobile, and digital health sectors.
Investment structure - Not ApplicableIndustries - Consumer Software, Business Software, Infrastructure, Automotive, Internet of Things (IoT).Startups funded - Fitbit, Invensense, Appsdaily, Deck, Portea, Capillary, Cruise Automation.
IDG Ventures India
IDG Ventures India holds a portfolio of more than 220 companies and has an experience of 15 years in the venture capital space.Investment structure - Invests between $1 million to $10 million.
Industries - Consumer Media, Mobile, Media and Technology, Enterprise Software, Engineering, Fin-Tech, Health-Tech.Startups funded - Lenskart, Zivame, Yatra, FirstCry, Ozone Media, UNBXD, Myntra.
How a Venture Capital Fund Operates?
Depending on the maturity of the business when the investment is done, venture capital investments can be seen as early-stage capital, seed capital or expansion-stage financing. However, the investment stage does not affect how venture capital funds operates.
- To begin with, before making any investments, venture capital funds (like all funds), has to raise money.
- Prospective investors are provided with the fund's prospectus before making a financial commitment. The operators of the fund contact each prospective investor after a commitment is made to finalise the amounts of each contribution.
- After that, private equity investments that have the potential of generating positive returns for its investors are sought out by the venture capital fund.
- This process involves the fund's manager/ managers reviewing business plans in hundreds, searching for potentially high-growth companies.
- Investment decisions are made by the fund managers and are decided according to the prospectus and the investor's expectations.
- An annual management fee of around 2% will be charged by the fund once an investment is made.
- Investors in venture capital funds receive returns on their investment when a portfolio firm exits through an IPO or merger and acquisition. If the investment is profitable, the fund will keep a portion of the earnings in addition to the annual management fee.
Disadvantages of Venture Capital Funds
Though venture capital funds come with an array of benefits, there are also a few disadvantages that they offer. Some of them are given below:
- When investors provide funding to a startup or small business, they effectively take over as part-owners, giving them influence over how decisions are made. The founders thus lose their authority and independence.
- The entire process of venture capital financing is lengthy and complex.
- This form of financing is very uncertain and benefits can be realised only in a long run.
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