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Indian technology start-ups saw 540 funding rounds in the first half of the current year, as start-ups collected $4.1 billion in the first six months of 2024.
Tech start-ups raised $4.1 billion in H1 2024, seeing a 4 per cent increase from $3.96 billion in H2 2023, but a 13 per cent decrease compared to $4.8 billion raised in H1 2023, according to a report by market intelligence platform Tracxn.
India still remains the fourth-highest funded country globally in the tech start-up landscape. The United States led in overall value of funds raised, followed by the UK and China.
“Despite four consecutive half-year periods of declining funding since H1 2022, we are now showing signs of stabilisation, going upward. India’s robust performance as the fourth-highest funded country in the tech start-up ecosystem is encouraging. From emerging developments in Retail and Enterprise Applications to pioneering advancements in fintech, Indian start-ups are transforming industries and driving economic growth,” said Neha Singh, Co-Founder, Tracxn.
Seed-stage funding
The report stated that the seed-stage funding increased to $455 million, up by 6.5 per cent from H2 2023 but down 17.3 per cent from H1 2023. Early-stage start-ups maintained a steady funding amount of $1.3 billion, consistent with H2 2023 but 28 per cent lower than H1 2023. Late-stage funding rose to $2.4 billion, marking a 3.8 per cent increase from H2 2023, although it saw a slight 1.3 per cent drop compared to H1 2023.
The leading sectors in terms of performance in H1 2024 were retail, enterprise applications and fintech. Funding in the retail sector increased by 32 per cent, reaching $1.63 billion in H1 2024, compared to $1.23 billion in H1 2023. The enterprise application sector raised $933 million in H1 2024, a 10 per cent decrease from the $1.04 billion raised in H1 2023.
In the fintech space, funding dropped by 50 per cent from $1.45 billion in H1 2023 to $726 million in H1 2024.
Despite these challenges, the first half of 2024 witnessed 8 funding rounds surpassing $100 million such as Flipkart’s $350 million Series J round led by Google, Apollo 24/7’s $297 million private equity round and Meesho’s $275 million Series F round.
In H1 2024, three unicorns emerged in India, a notable rise from none in H1 2023, alongside 33 new additions to the soonicorn club. The number of IPOs also rose to 17 in H1 2024, from 6 in H1 2023 and 12 in H2 2023.
Notable acquisitions included PingSafe, being acquired by SentinelOne for $100 million, marking the highest valued acquisition in H1 2024, followed by PureSoftware acquired by Happiest Minds for $94.5 million.
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. In the seed stage, Venture Catalyst, Z Nation Lab and We Founder Circle were the top investors. Peak XV Partners, Alpha Wave Global and Saama Capital are the most active early stage investors in H1 2024. DST Global, Epiq Capital Advisors and UC-RNT Fund are the leading investors actively involved in late-stage investments in H1 2024.
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