Funding for India's Tech Startups Rises by 6% to Reach $11.3 Billion in 2024, Ranking 3rd Globally
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Bengaluru, Dec 19 (NationPress) The tech startup landscape in India has successfully secured $11.3 billion in funding during 2024, showcasing a 6 percent rise from $10.7 billion in 2023, as indicated by a report released on Thursday.
In the latter half of 2024, tech startups attracted $5.32 billion through 540 funding rounds, representing an 8 percent increase from the $4.92 billion raised over 890 rounds in H2 2023, according to data from Tracxn.
India is positioned third globally in terms of funding, trailing only the US and the UK, while surpassing China and Germany.
“This report underscores a year characterized by resilience and adjustment for the Indian startup ecosystem, as evidenced by the modest rise in funding relative to 2023,” commented Neha Singh, Co-Founder of Tracxn.
While the funding landscape has shifted towards fewer, larger rounds, the rise of six unicorns, notable IPO activity, and growth within sectors like the gig economy, retail, and enterprise applications illustrate the ecosystem's capacity to adapt and innovate amid global challenges, establishing India as a global hub for entrepreneurial excellence and innovation, Singh added.
In 2024, India's tech ecosystem welcomed the creation of six unicorns, signifying a 200 percent increase from just 2 unicorns in 2023.
Additionally, 2024 saw substantial support from leading investors, with Accel, Blume Ventures, and Peak XV Partners emerging as the foremost VCs in the Indian tech landscape.
In terms of seed funding, Venture Catalysts, Z Nation Lab, and Blume Ventures stood out as the primary investors, while Accel, Peak XV Partners, and Elevation Capital excelled in the early stage. SoftBank Vision Fund, Creaegis, and Avataar Ventures were identified as the most active investors in the late stage, as per the report.
Regionally, Bengaluru, Mumbai, and Gurugram were the top three cities receiving funding. Tech companies based in Bengaluru accounted for 30.28 percent of all funding in India, closely followed by Mumbai, which secured 27.07 percent.
The gig economy, retail, and enterprise applications emerged as the leading sectors. Quick commerce particularly stood out, with 40 active companies, including Zepto (Unicorn), Dunzo (Soonicorn), and Swish and Farmako (Minicorns).
The healthtech sector also displayed strong growth in 2024, with over 7,000 active companies collectively raising $1 billion—a remarkable 133 percent increase from $438.2 million in 2023, according to the report.
