India’s venture capital (VC) ecosystem remains cautious, retaining significant cash reserves while being pressured for better returns. In 2024, VC firms raised approximately $2.5 billion, a rise from $1.9 billion in 2023, but deal activity has seen only modest improvements. Many VC investors are re-evaluating their strategies after the highs of 2021-2022, leading to a shift towards smaller funds and micro VCs for early-stage investments. Meanwhile, Razorpay aims for profitability and plans to return its headquarters to India. Unacademy reports a 62% reduction in losses, while Athera Venture Partners secures support from HDFC AMC for its fourth fund.