According to data intelligence platform Tracxn, funding rounds raised by Indian startups in 2024 fell by 32% compared to the previous year, indicating that investors are becoming more selective when making deals.
The number of startup funding rounds decreased to 1,448 compared to 2,114 last year, but overall funding increased by 6% to $11.3 billion ($10.7 billion in 2023). The difference here shows that investors aren't afraid to pull out their checkbooks when they need to. .
Early-stage investment activity reflected broader trends, with the number of Series A and Series B deals down to 387 from 420 a year earlier, while total invested capital remained flat at $3.16 billion. It was. However, fewer startups were able to raise seed funding this year, with the number of deals dropping from 1,545 to 925, and the amount raised by 22% to $970 million.
Late-stage funding highlights the market's preference for larger deals, with startups raising a total of $7.13 billion in 136 Series C and later rounds this year. This represents a 12% increase in capital despite the small volume. Startups raised 20 rounds worth more than $100 million in 2024, compared to 18 rounds in 2023.
India Startups and Ventures Snapshot, 2024 Image Credit: Traxcn
The public market emerged as a bright spot, with more than 40 startups completing IPOs. This is an 80% increase from 2023. Swiggy's $1.35 billion listing last month became the world's biggest tech IPO this year.
A pipeline of more than 20 startups, including quick commerce group Zepto and B2B marketplace Infra.Market, is gearing up to go public in 2025.
Several early-stage startup deals are also in the works, sources said. Quick commerce startup Swish is in talks to raise about $15 million. Premji Investment participates in negotiations to support Digitap. Spot Draft is seeking to raise a debt round. WhistleDrive is in negotiations to secure approximately $11 million. Vodex.ai is in advanced discussions to secure approximately $10 million to $15 million. 91squarefeet, Galaxeye.space, R for Rabbit and Biryani by Kilo are in advanced discussions to close new rounds.