For over a decade, ecommerce has functioned as the backbone of India’s consumer internet story, repeatedly absorbing capital across market cycles, formats, and business models. Even as venture funding entered a phase of correction, ecommerce did not lose relevance. Instead, 2025 marked a year of recalibration — capital continued to flow, but under materially different expectations.

In 2025, ecommerce startups raised $1.7 Bn across 206 deals, reinforcing the sector’s position in India’s startup ecosystem. While funding levels remained below the peak years of 2021 and 2022, deal activity suggested that investors had not stepped away from the sector. Rather, they had become more selective about where, when, and how capital was deployed.

In value terms, ecommerce ranked third in 2025, behind fintech ($2.5 Bn) and enterprise tech ($1.8 Bn). However, it led on deal volume. The numbers point to a sector that continued to attract capital across stages, even as cheque sizes and risk appetite underwent recalibration.

Part of this resilience was driven by the combined momentum of ecommerce and quick commerce. As Fireside Ventures’ cofounder and partner Kannan Sitaram pointed out, “consumer internet companies entered the year with aggressive operating plans and largely delivered on them”.

According to him, the structural expansion of digital commerce in India, which is marked by rising online adoption and higher purchase frequency, supported growth across portfolios.

“Ecommerce and quick commerce together have had a very good year for our companies. Digital commerce is getting wider, with more people buying and buying more often,” Sitaram said.

Sitaram added that Fireside completed 15 early stage ecommerce investments in 2025, along with multiple follow-on rounds, remaining active through the year, particularly at the venture and early stages.

Funding Returned, But Distribution Shifted In 2025

Aggregate funding figures, however, conceal sharp differences across stages of investment. According to Inc42, seed stage ecommerce startups raised $105 Mn across 92 deals in 2025, compared to $127 Mn across 89 deals in 2024. While seed stage funding declined in value terms, the increase in deal count indicates that investors continued to back new ideas, albeit with smaller cheques and higher scrutiny.

At the growth stage, funding and deal activity remained largely stable, reflecting a phase of consolidation as companies worked towards efficiency and margin........

© Inc42