India's venture capital funding rises 43% to Rs. 1,19,437 crore (US$ 13.7 billion) in 2024

India’s venture capital (VC) ecosystem demonstrated robust growth in 2024, with funding surging 43% YoY to Rs. 1,19,437 crore (US$ 13.7 billion), according to a report by Bain & Company and the Indian Venture and Alternate Capital Association (IVCA). This rebound was driven by a 45% rise in deal activity, with 1,270 transactions recorded, reinforcing India’s position as the second-largest market for VC and growth funding in the Asia-Pacific region. Small- and medium-ticket deals below Rs. 435.9 crore (US$ 50 million), which constituted nearly 95% of the total, grew 1.4 times. In comparison, transactions exceeding Rs. 435.9 crore (US$ 50 million) nearly doubled, returning to pre-pandemic levels. Megadeals above Rs. 871.8 crore (US$ 100 million) also saw a 1.6 times increase as investors backed high-quality companies that successfully navigated the two-year funding slowdown. 

Consumer technology, software, and Software-as-a-Service (SaaS), including generative artificial intelligence (AI) and financial technology (fintech), collectively attracted over 60% of the total funding. Consumer technology led the surge, securing Rs. 47,077 crore (US$ 5.4 billion), more than doubling from 2023, with major funding rounds for Zepto at Rs. 12,205 crore (US$ 1.4 billion), Meesho at Rs. 2,397.4 crore (US$ 275 million), and Lenskart at Rs. 1,743.6 crore (US$ 200 million). Software and SaaS funding reached Rs. 14,821 crore (US$ 1.7 billion), driven by demand for development tools and refined international market strategies. Government initiatives, such as eliminating the angel tax, reducing long-term capital gains (LTCG) tax, and streamlining foreign venture capital investor (FVCI) registrations, have strengthened investor confidence. India’s exit environment also improved, with total exits reaching Rs. 59,282 crore (US$ 6.8 billion), primarily through public markets. Initial public offerings (IPOs) rose nearly sevenfold, further cementing India’s startup ecosystem as a maturing investment destination. Emerging sectors like semiconductors, energy transition, and deep tech are poised for heightened investor interest in 2025.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.