Indian startup finance ecosystem still going strong, report shows over 50% growth in VC funding over last year

Indian startups have experienced a remarkable surge in funding during the first eight months of 2024, with a significant increase of 53.1% compared to the same period in 2023, according to a report by GlobalData.

From January to August 2024, Indian startups secured $7.5 billion in venture capital funding, a sharp rise from the $4.9 billion raised during the same timeframe in the previous year.

The report highlighted that not only did the total funding amount grow, but the average deal size also increased. A total of 780 venture capital deals were completed between January and August 2024, compared to 742 deals in the same period in 2023. These deals contributed to the $7.5 billion raised this year, marking a 5.1% rise in deal volume alongside the impressive 53.1% growth in funding value.

GlobalData's report emphasised India's growing prominence in the Asia-Pacific region as a major hub for venture capital investments, ranking second only to China. Globally, India secured a spot among the top five countries in terms of both the number of venture capital deals and the total funding value.

"The marked increase in venture funding value highlights the burgeoning investor confidence in India's startup ecosystem,” explains Aurojyoti Bose, lead analyst at GlobalData. "India's performance signals a promising landscape in the VC funding market".

From a global perspective, India accounted for 7.3% of the total venture capital deals between January and August 2024, with a 4.6% share of the total funding value. Additionally, India saw a notable increase in high-value VC deals, with several investments exceeding $100 million.

Some of the standout funding rounds this year included Zepto, which raised $665 million and $340 million in two separate rounds, Meesho's $300 million round, PharmEasy securing $216 million, OYO raising $173.5 million, and Radiance receiving $150 million.

These impressive funding rounds underscore the continued momentum and strength of India’s startup ecosystem in 2024, setting the stage for further growth and innovation in the coming years.

(With inputs from ANI)