Indian Startups See Wave of Consolidation Amid Funding Winter

India’s startup ecosystem has seen a steady rise in consolidation activity over the past year, as founders facing a tighter funding environment increasingly opt for mergers and acquisitions over new funding rounds.

Investors say the trend reflects a broader maturing of the market: companies that scaled quickly on cheap capital are now being absorbed by better-capitalized peers, while some marginal players are shutting down entirely. Analysts expect the pace of consolidation to continue as long as growth-stage funding remains selective.