6 unicorns, 29 IPOs: Indian tech startups see 7% decline in funding so far in 2024

After a positive momentum for the first six months of the calendar year, funding secured by Indian startups has seen a 7% drop year-on-year in nine months till September 2024. With 1,36,000 startups and 99 unicorns, India ranks 4th globally in funding, behind the U.S., UK and China.

In 2024 year-to-date, tech startups secured $7.6 billion in funding, marking a 7% drop from $8.2 billion in 2023 and a 66% decline from $22.4 billion in 2022, according to the latest data shared by data intelligence platform Tracxn. The India startup ecosystem ranks 4th globally, behind the US, UK, and China, with over 136K startups and 99 active unicorns. 

During the past nine months, the tech ecosystem saw 12 funding rounds exceeding $100 million, with Zepto raising $1 billion across two rounds, making it the only company to secure over $500 million this year. In comparison, there were 16 $100 million plus rounds in the first nine months of 2023, Tracxn says. Other notable startups this year, including Flipkart, DMI Finance, Apollo 24|7, Meesho, API Holdings, and Rapido, raised over $200 million each in 2024.

Retail, fintech, and food and agriculture tech emerged as the top-performing sectors. Retail attracted $1.95 billion in 2024 YTD, a 23% increase from 2023 but a 61% drop from 2022. Flipkart raised $350 million from Google, fuelling its expansion into quick commerce, while Meesho raised $275 million, bringing its total funding to $1.36 million across 11 rounds.

FinTech was the second highest funded sector, securing $1.49 billion, a 39% decline from $2.46 billion in 2023 and a 70% drop from $4.97 billion in 2022. Top-funded companies in the sector include DMI Finance, Credit Saison, Perfios, and Vivifi India Finance. 

Perfios raised $80 million, achieving unicorn status in March 2024. The food and agriculture tech sector saw $1.43 billion in funding, marking a 63% increase from $880 million in 2023, though down 48% from $2.75 billion in 2022. In 2024 so far, edtech and aerospace, maritime, and defence tech have been the most affected sectors. 

EdTech funding dropped by 46%, from $215 million in 2023 to $116 million in 2024, while funding in aerospace, maritime, and defence tech fell by 56%, from $184 million in 2023 to $80.7 million in 2024.

“India’s tech ecosystem continues to demonstrate resilience,” said Neha Singh, Co-founder Tracxn. “The emergence of six new unicorns and a surge in IPOs with 29 tech companies going public in 2024 YTD reflects investor confidence in the ecosystem. While overall funding has slowed, late-stage investments and the increasing momentum in fintech and retail show that innovation-driven growth is still thriving in India’s startup landscape.”

India saw six new unicorns in 2024 so far, marking a 500% increase compared to just one in 2023. IPO activity shows 29 tech companies going public, up from 15 in the same period last year. These IPOs include Aeron Composite, Firstcry, Unicommerce, Ola Electric, and RNFI Services. However, acquisitions declined by 36%, with 69 deals in 2024 compared to 107 in 2023, with significant ones including Kitchens-at by Finnest for $160 million and PingSafe by SentinelOne for $100 million.