Indian Startup Funding Sees Strong Growth in 2024, Driven by Big-Ticket Deals
The startup funding landscape in India has shown remarkable resilience and growth in 2024, with venture capital inflows marking a significant increase. Between January and September, Indian startups raised approximately $8.3 billion across 883 deals, representing a 50% year-on-year growth in funding value. This surge was fuelled by big-ticket deals and a rise in investor confidence, with sectors like retail, enterprise applications, and health tech leading the charge. Some of the largest funding rounds of the year were secured by prominent startups. Zepto, the quick commerce platform, raised $665 million across multiple rounds, while Meesho, a social commerce giant, secured $300 million. Edtech leader PhysicsWallah raised $210 million. These deals highlight a shift from the smaller investments seen in previous years, indicating investor confidence in scalable, high-growth businesses Bengaluru remains at the forefront of the funding boom, contributing nearly 40% of the capital raised, followed by Delhi and Mumbai. The ongoing increase in investment reflects India’s standing as a vital player in the global venture capital market, with the country accounting for around 7% of global VC deals. The IPO market also saw a boost, with 17 startups going public in the first half of 2024, compared to only six in the same period last year While India’s startup ecosystem is benefitting from renewed investment momentum, experts note that funding remains concentrated in specific sectors. The increase in deal value, especially for late-stage companies with proven business models, suggests a cautious but optimistic approach among investors. This trend is expected to strengthen India’s position as a leading destination for venture capital on the global stage, even amid global economic uncertainties.
