India's venture capital landscape to shift towards tech-first and infrastructure-led themes: Report

India's venture capital (VC)/growth equity market continued its upward trajectory in 2025, reaching approximately $16 billion and logging its second consecutive year of growth.

Looking ahead, "investor conviction is expected to concentrate around tech-first and infrastructure-led themes, including AI and generative AI, Q-commerce enablement and clean energy," according to a joint report by Bain & Company and IVCA.

As per the report, capital is likely to increasingly flow to models demonstrating clear monetisation and governance discipline.

The findings noted a sustained shift towards profitability-led capital deployment, with structural growth tailwinds from 2025 extending into the current year.

"Investor focus shifted decisively from growth-at-all-costs to profitability, unit economics, and cash flow visibility, deprioritising top-line-driven valuation narratives," the report stated.

The landscape is currently shaped by domestic macro resilience, characterised by a "strong GDP growth of approximately 7. 5 per cent and sustained public capex.

" Rising consumer spending and digital inclusion continue to support technology adoption despite global headwinds. Investors are now prioritising margin sustainability and credible breakeven paths over simple scale.

"AI/generative AI platforms are shifting from experimentation to demonstrable ROI, with differentiated data assets and proprietary models supported by deep technical talent and policy momentum," the report noted.