The landscape of India’s venture capital funding witnessed a strong resurgence in 2024. In defiance of global trends, the country received US$13.7 billion. This was a growth of 1.4x from US$9.6 billion in 2023. While megadeals worth over US$100 million witnessed a small decline in average size, India saw the emergence of 5 new unicorns in 2024.
The revival was mainly fueled by the growth of the number of deals and their average size.
Small- and medium-ticket deals accounted for nearly 95% of all transactions in 2024. Notably, deals worth over $50 million roughly doubled, reflecting strong investor appetite for good-quality assets. Zepto, Lenskart, Meesho, and other companies also attracted significant investments. The total number of deals thus recorded a y-o-y growth of 45%, reaching 1,270 from 880.
The total number of transactions jumped by 45%, from 880 in 2023 to 1,270 in 2024, with small- and medium-ticket deals constituting the vast majority (95%). Notably, deals exceeding $50 million roughly doubled, and returned to pre-pandemic levels, reflecting a strong appetite for high-quality assets. Companies like Lenskart, Zepto, and Meesho attracted significant investments. While megadeals ($100 million and above) saw a slight decrease in average size, the number of newly minted unicorns rose to five, signaling a healthy startup ecosystem.
In 2024, consumer technology attracted investments worth US$5.4 billion (up 2.3x from 2023). Over 60% of overall VC investments were targeted at industries like e-commerce, edtech, gaming, and travel tech. Based on industry reports, quick commerce also recorded explosive growth, and investments in Generative AI also surged by 1.5x year-on-year.
Moreover, traditional economic industries like insurance, banking, consumer retail, and financial services also recorded substantial growth. The Indian fintech sector embraced digital-first solutions and diversified its product portfolio. This has improved the overall economic outlook.
Despite the positive momentum, fundraising activity reached its lowest level since 2020 by recording a 35% decline. However, upcoming maiden funds suggest that investors are diverisfying their portfolios by focusing on areas like semiconductors, deep tech, and climate tech.
India is likely to witness a surge in growth-stage investments in 2023. Venture capitalists are expected to focus on sectors such as artificial intelligence and energy transition. With strong macroeconomic fundamentals and a vibrant startup ecosystem, the country is expected to remain the second-largest destination for venture capitalists in the Asia-Pacific region.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 12, 2025, 11:24 AM IST
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