Indian Tech Startups Raise $4.1 Bn In H1CY24, Surpass China In Funding Rounds, Tracxn Reveals

In a notable shift, Indian tech startups have outperformed their Chinese counterparts in the number of funding rounds in the first half of 2024, according to a report by Tracxn. Indian startups secured 540 funding rounds, surpassing the 327 rounds raised by Chinese startups, amidst a retreat of Western investment from China’s tech sector due to security concerns.

However, Chinese startups still led in total funding, raising USD 6.2 billion (around Rs 51,852 crore) compared to India’s USD 4.1 billion (around Rs 34,289 crore). This figure marks a 4 per cent increase from H2 2023 but a 13 per cent decline from H1 2023. Despite this, India remains the fourth-highest funded country globally, trailing behind the US, the UK, and China.

The first half of 2024 saw significant developments, including eight funding rounds exceeding USD 100 million. Flipkart led with a USD 350 million (around Rs 2927 crore) Series J round led by Google. Additionally, three new unicorns emerged in India, a significant rise from none in H1 2023, and 33 new startups joined the soonicorn club.

Noteworthy acquisitions included PingSafe, acquired by SentinelOne for USD 100 million (around ₹836 crore), marking the highest-valued acquisition in H1 2024. Bengaluru led in total funds raised during this period, followed by Delhi and Mumbai. Top investors included Accel, Blume Ventures, and Peak XV Partners.

Retail, enterprise applications, and fintech were the top-performing sectors in H1 2024. Seed-stage funding increased to USD 455 million, up by 6.5 per cent from H2 2023. Early-stage startups maintained steady funding of USD 1.3 billion, consistent with H2 2023, while late-stage funding rose to USD 2.4 billion, a 3.8 per cent increase from H2 2023.

"Despite four consecutive half-year periods of declining funding since H1 2022, we are now showing signs of stabilization, going upward. India's robust performance as the fourth-highest funded country in the tech startup ecosystem is encouraging," said Neha Singh, Co-Founder of Tracxn.

The period also saw significant IPO activity, with companies like TBO, TGIF Agribusiness, Radiowalla, and Trust Fintech going public. This dynamic landscape highlights the resilience and potential of India's tech startup ecosystem, even amidst global funding challenges.