India tech startups funding grows 6 pc to $11.3 bn in 2024, 3rd globally

Bengaluru, Dec 19 (IANS) India’s tech startup ecosystem garnered $11.3 billion in funding in 2024, a 6 per cent increase from $10.7 billion in 2023, according to a report on Thursday.

In the second half (H2) of 2024, the tech startups received $5.32 billion across 540 funding rounds, a growth of 8 per cent from H2 2023 where $4.92 billion was raised across 890 rounds, according to Tracxn data.

India ranked third in funding, behind only the US and the UK, and ahead of China and Germany.

“The report highlights a year of resilience and recalibration for the Indian startup ecosystem reflected in the modest increase in funding compared to 2023,” said Neha Singh, Co-Founder of Tracxn.

While funding patterns have evolved towards fewer, larger rounds, the emergence of six unicorns, significant IPO activity, and sectoral growth in gig economy, retail and enterprise applications demonstrate the ecosystem’s ability to adapt and innovate amidst global challenges making India an international hub for entrepreneurial excellence and innovation, Singh added.

India’s tech ecosystem witnessed the emergence of six unicorns in 2024, marking a 200 per cent increase compared to 2 unicorns in 2023.

2024 also saw strong backing from top investors, with Accel, Blume Ventures and Peak XV Partners being the top VCs in the India Tech ecosystem.

In the seed stage, Venture Catalysts, Z Nation Lab and Blume Ventures led the way as the top investors, while Accel, Peak XV Partners and Elevation Capital dominated the early stage and SoftBank Vision Fund, Creaegis and Avataar Ventures emerged as the most active in the late stage, the report mentioned.

In terms of city-wise funding, Bengaluru, Mumbai, and Gurugram emerged as the top three funded cities. Bengaluru-based tech firms accounted for 30.28 per cent of all funding seen by tech companies across India. This was followed by Mumbai at a close second at 27.07 per cent.

Gig economy, retail and enterprise applications stood out as top-performing sectors. Quick commerce emerged as a high-growth sector, with 40 active companies, including Zepto (Unicorn), Dunzo (Soonicorn), and Swish and Farmako (Minicorns).

The healthtech sector demonstrated robust growth in 2024, with over 7,000 active companies collectively raising $1 billion — a remarkable 133 per cent increase from $438.2 million in 2023, said the report.

–IANS

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