Startup VC funding in India soars 42% to $6.3 bn in Jan-July 2024

Indian startups raised $6.3 billion in a total of 672 deals during the January-July 2024 period, seeing a 42.1% year-on-year (YoY) increase in funding value, despite a modest 1.2% rise in deal volume, the latest data put out by the U.K.-based data and analytics company GlobalData shows.

The spike in VC funding in the first seven months of 2024 can be attributed to high investor confidence in India’s startups, even amid cautious global market conditions, says GlobalData.

During the same period last year, India witnessed a total of 664 VC deals with disclosed funding value worth $4.4 billion during January-July 2023.

“The massive jump in funding value, despite a modest 1.2% growth in deal volume, can be attributed to some of the big-ticket deals announced during the review period,” says Aurojyoti Bose, lead analyst, GlobalData. Bose says it also proves that although VC investors remain cautious, there is no dearth of money for promising startups.

Some of the notable venture funding deals announced in India during January-July 2024 include $665 million worth of funding raised by Zepto, $300 million raised by Meesho, $216 million worth of funding raised by PharmEasy, $150 million worth of funding raised by Radiance, $148 million worth funding raised by Kogta Financial and $120 million worth funding raised by Rapido.

“India, apart from being a key Asia-Pacific (APAC) market for VC funding activity standing just next to China, is also one of the top five markets globally in terms of both VC funding deal volume and value,” says Bose.

India accounted for around 7% share of the total number of VC deals announced globally during January-July 2024 while its share of the corresponding disclosed funding value stood at 4.3%.

Despite global economic uncertainties, India remains a key market for VC activity, driven by a robust pipeline of promising startups that continue to attract significant capital. “This trend reinforces India’s position as a critical player in the global venture ecosystem, demonstrating resilience and growth even amid cautious investment sentiment,” says Bose.

India remains the “fourth-highest funded country globally” in the tech startup landscape, a recent report by market intelligence firm Tracxn said. The first half of the fiscal year saw three new unicorns, a rise from none in H1 2023, alongside 33 new additions to the Soonicorn club. New IPOs also rose to 20 in H1 2024, from 6 in H1 2023 and 12 in H2 2023. Some of the top companies that went public included TBO, TGIF Agribusiness, Radiowalla and Trust Systems & S/w. In location, Bengaluru emerged as the leader in total funds raised during this period, followed by Delhi and Mumbai. The overall top investors in H1 2024 were Accel, Blume Ventures and Peak XV Partners.