In the first week of January 2025, Indian startups raised $14 million across five deals, a 46% drop from the previous week. This decline mirrors a similar trend from January 2024. Despite this sluggish start, optimism persists among investors, with 91% feeling more positive about 2025 investments. Aye Finance led the week with $12.8 million in debt funding, while edtech firms like Klassroom and NumberOne Academy also attracted attention. Challenges remain, exemplified by Dunzo’s financial distress, but the overall sentiment suggests potential recovery in the startup ecosystem as innovation continues to drive interest in sectors like fintech and edtech.