Indian startups raised $9.2 billion in 984 venture capital (VC) deals during January-October 2024, compared to $6.4 billion in 930 deals during the same period in 2023, according to data from data analytics and consulting firm GlobalData. The deal amount or value registered a jump of 44.4 per cent, while the deal count or volume increased 5.8 per cent.
The VC deal value in India from January to October was 4.2 per cent and the deal count was 7.1 per cent of the global VC deals during the 10-month period.
Speaking on the growth, Aurojyoti Bose, Lead Analyst at GlobalData said investor confidence seems to be reviving as India demonstrates significant improvement in VC funding activity during the year compared to peer countries.
“In fact, it was among the few key markets that witnessed the improvement in both deal volume and value during January-October 2024. Moreover, India continues to remain among the top five markets globally for VC funding activity in terms of deal volume as well as value.”
Major deals during the period in India were Zepto’s $665 million funding in June followed by an additional $340 million in August, Meesho’s $300 million round, PharmEasy raising $216 million, PhysicsWallah securing $210 million, and Purplle raising $178.4 million.
The venture funding landscape has undergone a notable shift since its peak in 2021 and the subsequent downturn. Although the funding levels have declined from the record-breaking $38 billion reached in 2021, signs of recovery are promising.
According to a report by VC firm Bessemer Venture Partners in August 2024, startup funding is likely to surpass 2023 levels by about 25%, with nearly $1 billion in new venture capital directed toward Indian startups.
India’s VC landscape evolved further in 2023 with resilient startups reshaping the investment narrative. The fall in VC funding in India had reflected global caution toward risk capital. However, the ecosystem shows signs of maturity in 2024 as investors have adjusted to the new normal by refining investment strategies and strengthening governance frameworks parallel to startups focus on improving profitability.
Over the long term, India’s strong fundamentals—including its vast consumption potential, demonstrated fiscal and monetary discipline, geopolitical strengths, and growing digital infrastructure—will likely continue driving investor confidence.