VC Funding Trends and Exit Strategies in India

Exit strategies are crucial for venture capital (VC)-funded startups, playing a pivotal role in the lifecycle of a company by providing liquidity and returns to investors. In India, the landscape of venture capital and the various exit strategies employed by startups are influenced by multiple factors, including market conditions, strategic partnerships, and sector-specific challenges and opportunities.

Challenges and Opportunities in Cybersecurity Exits

Cybersecurity startups in India face unique challenges and opportunities when it comes to exit strategies. Mergers and acquisitions (M&A) are common pathways for these startups, as the sector shows increasing interest from acquirers. Investors in cybersecurity analyze market conditions meticulously before deciding on exit strategies, ensuring that the timing and strategy are effective. Strategic partnerships can enhance the exit potential for these companies, positioning them strongly within the market.

The timing of an exit is influenced by market trends, which can significantly affect the success of the strategy. Successful exits often require robust market positioning and evidence of growth, which cybersecurity startups strive to achieve. The regional and market conditions in India further dictate the variations in exit trends, underscoring the need for tailored strategies.

Notable Exits in 2025

The year 2025 marked a significant period for VC exits in India, with several senior partners leaving their positions in prominent VC firms. This wave of departures was driven by changing fund strategies and personal priorities, leading to a trend where investors transitioned into entrepreneurial roles or became operators. Among the notable exits was Anurag Sud, who left Apax Partners in January 2025 after over a decade of experience in private equity.

Vivek Mathur, who supported startups in direct-to-consumer (D2C), agritech, and climate tech sectors, exited Elevation Capital in February 2025. Priyanka Gill also exited Kalaari Capital in the same month. Shraeyansh Thakur, who had been with Peak XV since 2015, and Shailesh Lakhani, who had served the firm for 17.5 years, both left Peak XV. Abheek Anand, who joined Peak XV Partners in 2013, exited in June 2025 after over a decade of contribution.

Transition of Roles Among VC Professionals

The exits of several partners in 2025 highlight a growing trend in the VC landscape where investors are becoming operators. Priya Mohan stepped down from General Catalyst after serving 22 years in professional roles, reflecting a broader shift in career trajectories. Harshjit Sethi, who became a partner at Sequoia Capital in 2021 and was a board member for several startups, left Peak XV in September. Mohan, who also worked as an equity analyst with Deloitte, represents the diverse backgrounds and evolving interests of VC professionals.

Impact on Unicorn Listings and Market Dynamics

The market dynamics in India have also been influenced by the listing of numerous unicorns. High-profile companies such as Zomato, Zoho, and Swiggy have made significant strides, showcasing the potential and growth of Indian startups. These unicorns not only highlight the success stories within the Indian startup ecosystem but also emphasize the importance of strategic exits and market positioning for VC-funded companies.

Overall, the VC funding trends and exit strategies in India continue to evolve, shaped by market conditions, strategic partnerships, and the shifting roles of investors. As the landscape changes, startups and investors alike must navigate these complexities to achieve successful exits and maximize returns.