Venture capital (VC) in India funding up 50% in Q1-Q3 2024 on increased big-ticket deals

Venture capital (VC) funding in India experienced a significant growth of 50.4% YoY in the first three quarters of calendar year 2024, reaching US$ 8.3 billion, as reported by GlobalData. This surge is attributed to an increase in deals valued at over US$ 100 million each. A total of 883 deals were announced between January and September 2024, reflecting a 7.3% rise in volume compared to the same period in 2023. The disclosed value of these deals rose from US$ 5.5 billion in 2023 to US$ 8.3 billion in 2024.

High-value transactions played a crucial role in this uptick, with notable deals including US$ 665 million and US$ 340 million raised by Zepto in separate funding rounds, US$ 300 million by Meesho, US$ 216 million by PharmEasy, and US$ 210 million by PhysicsWallah. The number of "big-ticket" deals increased from 10 in Q1-Q3 2023 to 15 in 2024. Aurojyoti Bose, lead analyst at GlobalData, stated, "The challenge that the Indian start-up ecosystem faced in raising money in 2023 seems to be fading away as VC funding activity has continued to improve this year." He noted that India, a key market in the Asia-Pacific region next to China, remains among the top five global investment destinations for VC firms, with a shift from cautiousness to cautious optimism among investors.

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