In 2024, the Indian startup ecosystem has experienced a notable revival, emerging from a recent funding winter. According to Inc42’s “Indian Tech Startup Funding Report 2024,” the total funding raised by domestic startups increased by 20% to $12 billion, up from $10 billion the previous year. This resurgence has been marked by an increase in the number of funding deals as well, which rose by 11% from 897 to 993.
The optimism surrounding future funding trends is significant, with a survey conducted by Inc42 revealing that 91% of investors anticipate improved funding numbers in 2025, an increase from the 81% optimism recorded in the previous year. This positive outlook appears substantiated by the funding figures and the stability observed, as the levels are comparable to those recorded in 2020.
A key highlight in the funding landscape are the initial public offerings (IPOs) of new-age tech companies which reached an unprecedented total this year. Thirteen such companies made their stock market debut after raising over ₹29,000 crore through fresh issues and offers for sale during their listings.
Early-stage funding has been particularly vigorous, witnessing a staggering 31% year-on-year growth as investors increasingly focus on nascent AI startups. A significant 56% of investors indicated that AI and generative AI (GenAI) are their primary investment sectors, followed closely by cleantech and renewable energy (43%), fintech (39%), and eCommerce (33%).
The comprehensive data has also focused on identifying the top investors for 2024. AngelList India emerged at the forefront, participating in 120 deals throughout the year, making it the most active in the burgeoning startup ecosystem. Investment from AngelList has focused on a variety of sectors, including fintech with startups like Ambak and deeptech with WorkHack.
Stride Ventures followed as a prominent venture debt firm, engaging in 76 deals this year, with investments in companies such as Ola Electric and PharmEasy. Founded in 2019, Stride Ventures has consistently sought opportunities across multiple sectors.
Another significant player, Alteria Capital, announced 73 deals, directing capital into various startups, including fintech unicorn OneCard and dairy tech startup Country Delight. Launched in 2017, Alteria has established itself as a leading venture debt fund.
Early-stage venture capital firm DeVC also showcased its activity, announcing 60 deals in 2024, while Blume Ventures and Trifecta Capital reported 58 and 55 deals respectively.
Founded by notable figures in the Indian startup ecosystem, the venture capital landscape is robust, with firms like 100X.VC and ah! Ventures also significantly contributing to early-stage funding. 100X.VC, established in 2019, concluded 54 deals, while ah! Ventures participated in 51.
Inflection Point Ventures and InnoVen Capital rounded out the list of active investors, each documenting 48 deals, with InnoVen Capital particularly noted for its investment into IPO-bound companies and emerging startups across an array of sectors.
Overall, the landscape for Indian startups in 2024 indicates a resurgent and diverse investment environment, with key players actively engaging across multiple sectors while fostering innovation and growth in new-age technologies.
Source: Noah Wire Services