Ravi Kaushik Previews VC Investment Themes for India in 2025
India’s startup ecosystem has seen a 50% increase in funds raised during the first nine months of 2024. As this momentum is expected to continue into 2025, an article by Flourish Executive Director and Head of Asia Investments Ravi Kaushik offers a detailed take on which areas will see the most investment over the next year:
1) Digital Banking & Infrastructure: As 5G rollout accelerates, startups expanding internet connectivity, building scalable digital infrastructure, and leveraging open APIs to create low-cost solutions will attract strong VC interest. Mission-driven ventures addressing underserved demographics as well as the AI-powered innovations disrupting legacy systems will also attract investors as they reshape financial access and drive India’s next wave of growth in 2025.
2) Climate Fintech: With India’s ambitious goal of achieving net-zero carbon emissions by 2070, climate fintech startups are stepping up to the challenge as they build sustainable finance solutions to create scalable tools with global appeal. Additionally, the growing adoption of EVs across categories is opening up even more exciting opportunities for startups looking to create a greener future.
3) Embedded Finance: Embedded finance startups that are integrating financial products into non-banking platforms will see heightened VC interest. Combine that with India’s rising internet penetration and online consumption that is set to grow from $5.8 billion today to $28.6 billion by 2029, and you can see why embedded finance will continue to be a key area to watch in 2025.
4) Payments, Domestic and Cross Border: India’s digital payments market is set to double from $3.5 trillion in 2024 to over $7 trillion by 2029. With UPI and the rising use of wallets and credit cards, startups enabling merchants to accept diverse payment methods are gaining momentum. Add to that the government’s push for CBDCs and stablecoins, alongside new cross-border payment licenses, and it’s clear that the payments space offers huge opportunities for startups and VC investment.
With 2025 on the horizon, Ravi’s trends underscore how startups are modernizing the way money moves and addressing some of the region’s most pressing challenges - two key areas that will define the next chapter of India’s growth story.
Read through the rest of his outlook for 2025 via moneycontrol.com