Indian mutual funds nearly doubled their startup investments to ₹1.77 lakh crore by end-2025, betting on long-term digital growth despite market dips.

Indian domestic mutual funds nearly doubled their stakes in new-age startups, holding Rs 1.77 lakh crore in such firms by end-2025, up from Rs 95,000 crore in 2024, according to ET analysis. They significantly increased positions in consumer internet companies like Swiggy, Eternal, and Groww, even as some stocks declined, reflecting a long-term, contrarian strategy. Swiggy’s Rs 10,000-crore institutional sale saw funds triple their stake. Excluding 2025 IPOs, holdings rose over 60%. With several startups including Zepto and PhonePe preparing for public listings, mutual fund participation is expected to remain strong, driven by belief in digital sector growth outpacing GDP and a “winner takes all” market dynamic.