India's tech funding grows 6%, number of deals falls 31.5% to 1,448 in 2024

India’s tech landscape raised $11.3 billion from investors in 2024, marking a modest 6 per cent increase from $10.7 billion raised in the previous year, signalling a recovery in funding trends after a two-year slump.

 

However, compared to the funding highs of previous years, the value of deal activity declined significantly—down 55.5 per cent and 69.6 per cent compared to 2022 and 2021, respectively. The country’s startup ecosystem had raised $37.2 billion in 2021 and $25.4 billion in 2022, according to data from market intelligence platform Tracxn.

 

The number of funding rounds fell to 1,448 in 2024, compared to 2,114 in 2023, and was far below the five-year peak of 3,311 recorded in 2021.

 

Quick commerce platform Zepto led major funding rounds this year, raising a total of $1.35 billion. Murugappa Group’s TI Clean Mobility and e-commerce platform Flipkart secured $359 million and $350 million, respectively, ranking among the top funding rounds in 2024.

 

Investors allocated $7.1 billion to late-stage rounds in 2024, followed by $3.2 billion in early-stage rounds and $971 million in seed rounds.

 

The number of acquisitions fell by 19.3 per cent to 113 in 2024, compared to 140 in 2023. However, the number of companies listing on the bourses rose sharply to 37 this year—the highest in at least five years—compared to 21 in 2023.

 

The tech ecosystem minted six unicorns in 2024, compared to just two in 2023.

 

Quick commerce, the gig economy, retail, and enterprise applications emerged as the top-performing sectors this year.

  Gig economy: Recorded $2.2 billion in funding, a sharp increase from $420 million in 2023.  Retail: Secured $2.6 billion, reflecting a 13 per cent decline from $3 billion in 2023, indicating market recalibration.  Enterprise applications: Attracted $2.2 billion in funding, an 11 per cent decline from $2.5 billion in 2023.  Quick commerce: Raised $1.37 billion cumulatively, largely driven by high-value funding deals in Zepto.  India retained its position as the third highest-funded country, following the United States and the United Kingdom.