India’s tech start-ups raised a total $7.6 billion in funding from January to September 2024, marking a 7 per cent drop from $8.2 billion in 2023 and a 66 per cent decline from $22.4 billion in 2022.

Nonetheless, India remains the fourth-largest start-up ecosystem globally, behind the US, UK, and China, with over 136,000 start-ups and 99 active unicorns, according to a report by market intelligence platform Tracxn.

“Despite the broader economic challenges, 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 sector. 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.”

‘Only Zepto crossed $500 million mark’

The ecosystem saw 12 funding rounds exceeding $100 million in 2024 YTD, with Zepto raising $1 billion across two consecutive rounds, making it the only company to secure over $500 million this year.

The majority of funding came from late-stage rounds, which garnered $4.7 billion, compared to $4.9 billion in 2023 and $14.3 billion in 2022.

Early-stage funding reached $2.2 billion, down from $2.5 billion in 2023 and $6.4 billion in 2022. Seed-stage funding totaled $743 million, compared to $890 million in 2023 and $1.6 billion in 2022.

Retail gets the chunk

Retail attracted the highest funding, raising $1.95 billion in 2024 YTD—a 23 per cent increase from 2023, though down 61 per cent from 2022. Flipkart raised $350 million from Google to expand its quick-commerce offerings, while Meesho secured $275 million, bringing its total to $1.36 billion across 11 funding rounds.

Fintech followed, raising $1.49 billion. Although this marks a 39 per cent decline from 2023 and a 70 per cent drop from 2022, top players like DMI Finance, Credit Saison, and Perfios still saw strong investment. Perfios became a unicorn after raising $80 million in March 2024. Food & Agriculture Tech saw a 63% rise in funding, reaching $1.43 billion in 2024, despite a 48 per cent drop from 2022 levels.

However, sectors like edtech and aerospace, maritime, and defence tech were the hardest hit. Edtech funding plunged 46 per cent to $116 million, while aerospace and defence tech fell by 56 per cent, to $80.7 million.

India saw six new unicorns in 2024, a 500 per cent increase from just one in 2023, and IPO activity surged with 29 tech companies going public, nearly doubling last year’s figures. Meanwhile, acquisitions declined by 36 per cent, with 69 deals in 2024 compared to 107 in 2023.

Bengaluru, Mumbai, and Gurugram led in funding, with Bengaluru alone accounting for over 35 per cent. India’s favourable government policies, including the abolition of the angel tax and extended tax benefits, coupled with a strong GDP growth, have made it a prime destination for global investors.

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