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In focus
- Why much of India’s VC money isn’t flowing
- Earned wage access firm Ekko raises funds even as industry faces consolidation
- From our archives: why Indonesia’s stock market tumble matters for tech
Hello reader,
I have been writing about startups for over eight years, yet every few days I still come across an unfamiliar company raising fresh capital. It makes me wonder just how many new startups enter India’s ecosystem every month.
On the surface, the venture story looks strong. Billions of dollars have flowed in – with more than 100 unicorns minted – and India remains one of the world’s busiest startup factories. But speak to limited partners (LPs), and a different reality appears. For many, their capital is still locked up.
Exits remain the system’s weak link. IPO activity has been uneven since the 2021-2022 boom, with early listings like Paytm suffering sharp post-debut declines. Strategic M&A hasn’t helped either, with not enough deals seen in 2025. For LPs hoping to recycle capital, options are scarce.
Secondary sales should provide relief. Globally, this is a US$200 billion market. In India, however, it barely functions, and there’s little visibility into LP secondary trades, which happen privately.
Today’s first featured story by Rachel Chitra looks at why capital meant to flow back into new funds remains stuck and how that hesitation is slowing the startup funding cycle.
Going back to unfamiliar companies, Ekkko, an earned wage access (EWA) startup based in Hanoi, recently closed a seed round, offering a signal for where early-stage momentum is still building.
Samreen Ahmad, Journalist
Top Stories
1️⃣ LPs in limbo: why much of India’s VC money is stuck on ice
Image credit: Timmy Loen
The country has a thriving startup scene, but exits remain scarce. IPOs are occasional; strategic M&A is thin, with just 136 tech acquisitions in 2025; and LP-led secondary sales account for only 30% to 35% of an already small market.
By focusing on LPs rather than founders, this story shows how the market regulator’s fixed 10-year fund life, opaque pricing, and tax frictions are locking up capital, thereby slowing the recycling of money that sustains India’s startup ecosystem.
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