TheCapTable

Sign In

FintechEdTechIPOInternetFood DeliveryE-CommerceCryptoMobilityLogisticsHealthTechInvestmentsGamingPolicyOTTThe CruxSAASB2B-TechAgriTechStrategyAnalysis

Join our mailing list

Our mailers and newsletters give you fresh, though-provoking perspectives into the world of startups and beyond. Don't miss out

Subscribe

TheCapTable

Home About Us Subscription Contact Us

Follow Us

© 2025 The CapTable

Venture Capital

Mind the gap: India’s startup ecosystem adapts as time from Seed to Series A widens

Sai Keerthi

Nikhil Patwardhan

March 10, 2025 | 12 Min Read

March 10, 2025 | 12 Min Read

The gap between Seed and Series A, as well as Series A to Series B, has widened significantly, forcing India’s startup ecosystem to adapt. While founders focus on building more sustainable businesses, VCs are reassessing their exit strategies as securing follow-on capital becomes challenging.

Key Takeaways

India's funding landscape has become more challenging, with longer gaps between Seed, Series A, and Series B rounds, forcing startups to prove revenue potential early
Investors are now favouring capital-efficient businesses over heavily-funded ventures, leading to a decline in valuations and more scrutiny on unit economics
Exits have become harder due to delayed funding cycles, pushing VCs toward secondary sales and alternative strategies to return capital to their LPs
This has seen secondary-focused funds gain prominence, with the Indian government also reportedly considering launching its own

In September 2021, just months after Zomato went public, two Mumbai-based friends—one a software engineer, the other a business graduate—met on a Friday evening to discuss a startup idea they had contemplated for years.

Having just witnessed the foodtech’s public market success and the Indian startup ecosystem’s surge in funding, they believed the timing was perfect to finally start up.

“Every day, we read about new unicorns and massive investments pouring into India’s startup ecosystem,” the engineer recalled. “We had a solid concept, an execution plan, and all we needed was capital. Investors were bullish on India, so we decided to take the plunge.”

This is a premium article and available only to subscribers.

Already a subscriber? Sign In

What's your right fit?

Be the smartest person in the room. Choose the plan that works for you and join our exclusive subscriber community.

Premium Articles

4 articles every week

Archives

>3 years of archives

Org. Chart

1 every week

Newsletter

4 every week

Gifting Credits

5 premium articles every month

Session

3 screens concurrently

₹1,399 / Year

₹3,999

Subscribe Now

Have a coupon code?

Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds

company1

company2

company3

company4

company5

company6

company7

company8

company9

company1

company2

company3

company4

company5

company6

company7

company8

company9

Trusted by the best

Karthik Reddy

Blume Ventures

The CapTable brings a refreshing set of insights for us at the Blume team, highlighting stories that bring together the underlying business and founders with that of investors' journeys with these startups. It's an important perspective that very few bring to startup ecosystem enthusiasts.

Umang Bedi

VerSe Innovation

The CapTable is an essential resource for Indian startups. Its insightful analysis and diverse perspectives make it a valuable asset for entrepreneurs and investors navigating the startup landscape.

Ashwin Damera

Eruditus

I enjoy reading The CapTable's insightful coverage of the Indian start up ecosystem. The articles are well researched, are deeply analytical and offer a balanced view. The CapTable has deep access to founders and investors and this enables it to publish very insightful commentary. I appreciate the spotlight they are giving to Indian startups. Kudos to the team!

Latest Articles

How bitter rivals Jio and Airtel are teaming up against common threats

India's telecom titans are finding common ground to protect their virtual duopoly. But even as the duo oppose spectrum surrender policies and align on satellite spectrum allocation, DoT's proposed relief measures for the sector could soon test the limits of their alliance.

Pratap Vikram Singh

Why your everyday apps are starting to look like a Japanese lunch box

From Zepto and PhonePe to Tata Neu and Swiggy, app homepages are mirroring the neatly compartmentalised design of a bento box. While this trend stems from tech companies’ accommodating their many services, it also reflects an attempt to better understand and shape user behaviour.

Pranav Balakrishnan

India’s pickleball mania is not just that, an ecosystem is taking shape

Pickleball is everywhere in India, from the buzzy metros to the enterprising small towns. Active players have gone up nearly 300% in three years, and courts have grown 10-12X across the country. Beyond the game itself, pickleball equipment, apparel, and accessories are also taking off.

Sohini Mitter

Q-commerce promised what e-pharmacies couldn’t, but can it actually deliver?

From Zepto to Instamart—quick commerce players are promising lightning-fast medicine deliveries. But the hot category’s strict regulations, pharmacist requirements, and vast catalogues could slow their rush.

Shivani Verma

Google searches for answers after public policy headache

Google India has struggled to hold onto a stable public policy leader for some time now. The latest to exit the role is Sreenivasa Reddy, who was terminated by the company a few weeks ago under controversial circumstances. The organisation has now rejigged the team, but will that be enough?

Pratap Vikram Singh

subscribe_graffiti

Convinced that The Captable stories and insights
will give you the edge?

Convinced that The Captable stories
and insights will give you the edge?

Subscribe Now

If you want to see more, Sign Up for access to our Crux newsletter and several free articles

Sign Up Now