India’s Tech Startup Funding Sees 4% Uptick In H1 2024
Seed-stage funding saw a slight increase to USD 455 million, early-stage funding remained steady at USD 1.3 billion, and late-stage funding rose to USD 2.4 billion
India’s technology startup ecosystem has raised a total of USD 4.1 billion in the first half of 2024 despite facing sectoral challenges. According to a report, this marks a modest 4 per cent increase from the previous half-year period, where startups garnered USD 3.96 billion.
The Tracxn report mentioned that this ecosystem saw a 13 per cent decline compared to the USD 4.8 billion raised in the first half of 2023, positioning India as the fourth-highest funded country globally in the tech startup landscape.
Key trends from the report highlighted fluctuations in monthly funding peaks, with April 2024 recording the highest monthly total of USD 862 million. This contrasts with January 2023, which saw the highest funding for any single month at USD 1.41 billion. The period also witnessed significant milestones in startup evolution, with three new unicorns emerging alongside 33 additions to the ‘Soonicorn’ club, indicating robust growth potential within the ecosystem.
Sector-wise, Retail, Enterprise Applications, and FinTech emerged as the top performers in H1 2024. Retail sector funding surged by 32 per cent, reaching USD 1.63 billion, while Enterprise Applications secured USD 933 million despite a slight decline from the previous year. In contrast, FinTech experienced 50 per cent decrease, attracting USD 726 million compared to USD 1.45 billion in H1 2023.
Geographically, Bengaluru led the charge in funding with its contributions, followed closely by Mumbai and Hyderabad.
The investment landscape across various stages showcased varied trends: seed-stage funding saw a slight increase to USD 455 million, early-stage funding remained steady at USD 1.3 billion, and late-stage funding rose to USD 2.4 billion.
In terms of investor activity, Accel, Blume Ventures, and Peak XV Partners emerged as the top investors overall in H1 2024. Venture Catalyst, Z Nation Lab, and We Founder Circle dominated the seed stage, while Peak XV Partners, Alpha Wave Global, and Saama Capital were prominent in early-stage investments. DST Global, Epiq Capital Advisors, and UC-RNT Fund led the charge in late-stage funding initiatives.
Despite the overall funding growth, the report also highlighted a decline in acquisition activities within the Indian startup ecosystem. H1 2024 recorded 43 acquisitions, a drop from 75 in H1 2023. Notable acquisitions included PingSafe, acquired by SentinelOne for USD 100 million, the highest-valued acquisition in the period.
The increase in IPOs was notable, with 17 startups going public in H1 2024 compared to 6 in H1 2023 and 12 in H2 2023. This growth in public listings points to a growing investor confidence and market maturity within India’s tech startup landscape.
