India’s Tech Startups Secure $11.3 Bn In 2024, Marks 6% Growth From 2023
Q4 2024 recorded the lowest quarterly funding in three years, with USD 1.8 billion raised across 219 rounds, a 33.3 per cent lower than Q4 2023
According to the report, startups raised USD 11.3 billion in 2024, reflecting a 6 per cent increase from USD 10.7 billion in 2023, but a 56 per cent drop compared to 2022. The second half of 2024 saw USD 5.32 billion raised across 540 funding rounds, indicating a shift towards larger investments despite fewer deals. Tracxn, a market intelligence platform, has released its India Tech Annual Report 2024, highlighting key trends and data points from the Indian tech startup ecosystem.
Q4 2024 recorded the lowest quarterly funding in three years, with USD 1.8 billion raised across 219 rounds, a 47.5 per cent decline from Q3 2024 and 33.3 per cent lower than Q4 2023. Globally, India ranked third in funding, trailing the US and the UK while outpacing China and Germany.
Six unicorns emerged in 2024, a 200 per cent rise from 2023, though significantly below 2022’s 24 unicorns. Acquisition activity also slowed, with 113 deals recorded—a 19.3 per cent drop from 2023. Notable acquisitions included NIIF’s USD 200 million purchase of iBUS and Finnest’s USD 160 million acquisition of Loyal Hospitality.
Sector-wise, the Gig Economy surged with USD 2.2 billion in funding, a 414 per cent increase over 2023, while Retail and Enterprise Applications raised USD 2.6 billion and USD 2.2 billion, respectively, reflecting moderate declines. Quick commerce emerged as a standout, led by Zepto, which secured USD 1.37 billion across three rounds.
EdTech and HealthTech remained robust, raising USD 620 million and USD 1 billion, respectively. The HealthTech sector saw a 133 per cent increase in funding compared to 2023, bolstered by major rounds from API Holdings and Apollo 24|7.
India also witnessed 37 IPOs in 2024, a 76.19 per cent rise from 2023, with notable listings from Swiggy and Niva Bupa. Government policies, including the PM-eDrive Scheme and the abolition of the Angel Tax, further boosted the entrepreneurial ecosystem, fostering innovation and job creation.
Bengaluru, Mumbai, and Gurugram led city-wise funding, while investors like Accel, Blume Ventures, and Peak XV Partners dominated the landscape. As Indian startups continue to innovate, the report underscores their resilience and adaptability in the face of global economic challenges.
