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A breakthrough year for India’s tech startups

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A breakthrough year for India’s tech startups

Athira Sethu

Kochi, 4 April 2025

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India’s technology startup ecosystem saw considerable growth in 2024, with funding increasing by 23% to a total of $7.4 billion. Deeptech startups, which deal with cutting-edge technologies like artificial intelligence and robotics, raised $1.6 billion, representing a 78% increase from the previous year. This growth indicates India’s increasing significance in the global tech sector.

In 2024, more than 2,000 new tech startups were founded, a doubling of last year’s number. One of the biggest trends is that 44% of the new startups originated in smaller cities outside the top tech centers such as Delhi, Bengaluru, and Mumbai. This movement is building towards an even more balanced, countrywide tech ecosystem In addition, 29% of the 450 new deeptech startups too originated from such emerging areas, further broadening innovation beyond its traditional centers.

Experts opine that in order to keep expanding, India’s tech startup industry must overcome many challenges. Nasscom president Rajesh Nambiar emphasized the need to learn more about how deeptech startups are being valued and building greater coordination among the government, industry, and academia. Nambiar further emphasized the importance of increased investment in research and development (R&D). Nambiar reinforced that India must become creators of technology, not mere users, in the near future.

Artificial intelligence is contributing importantly to the tech startup industry. In 2024, AI startups received 87% of all deeptech investments, indicating the increasing significance of AI to India’s technology future. The deals in the tech startup industry grew from 824 in 2023 to 1,045 in 2024. Seed funding increased the most at 29%, with early and late-stage funding increasing by 25% and 21%, respectively. Yet, challenges such as talent deficits and complicated regulations still persist.

India today boasts some 32,000-35,000 tech startups, a huge jump from only 3,000 back in 2014. In the future, 2025 is likely to be a year of more growth, with emphasis on deeptech, AI, and spreading the startups beyond the big cities.

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