VC backdrop shifts as India records seven-year high in startup exit activity in Q3

A report from KPMG Private Enterprise finds that while venture-capital investment in India slowed during Q3 2025, exit volumes surged to a seven-year high. Exit value in Q3 was driven by IPOs and acquisitions, reflecting an evolving ecosystem. Although new funding trended down, the record exits signal investor confidence in the monetisation cycle. Analysts say this divergence may encourage limited-partners to stay engaged in later-stage rounds. The shift also underpins readiness of Indian startups to deliver liquidity, bolstering long-term funding viability and ecosystem maturity.