Anindita Nayak
Bhubaneswar, 22 June 2024
Indian tech startups raised $4.1 billion in the first half of 2024, an increase of 4% from $3.96 billion raised in the second half of 2023, according to the India Tech Semi-Annual Funding Report H1 2024 by Tracxn. However, it marks a 13% decline compared to the $4.8 billion raised at the same period of last year.
India, previously ranked fourth globally in tech startup funding, dropped a position as China surpassed it in raising higher funds.
In the first half of 2024 (January-June), China raised $6.2 billion, making it the third-highest funded country globally. Despite China raising more funds, it had fewer funding rounds with 327 compared to India’s 540.
India also had more first-time-funded companies at 168, whereas China had 159. The US remained the leader in overall funding, followed by the UK, the report said.
“Despite four consecutive half-year periods of declining funding since H1 2022, we are now showing signs of stabilisation and an upward trend. India’s robust performance as the fourth-highest-funded country in the tech startup ecosystem is encouraging. From emerging developments in retail and enterprise applications to pioneering advancements in financial technology (fintech), Indian startups are transforming industries and driving economic growth,” said Neha Singh, co-founder of Tracxn.
According to the data consultancy firm, while seed-stage funding increased to $455 million, up 6.5% from the second half of 2023; early-stage startups received a steady funding of $1.3 billion, consistent with the second half of 2023. Late-stage funding saw an increase to $2.4 billion, up by 3.8% from the second half of 2023, the report noted.
During the first half of 2024, eight funding rounds exceeding $100 million have been executed. Notable rounds included Flipkart securing $350 million in Series J funding led by Google, Apollo 24|7 raising $297 million in a private equity round, and Meesho receiving $275 million in Series F funding. The top-performing sectors during this period were retail, enterprise applications, and fintech.
Among the sectors, funding for the retail sector grew by 32%, reaching $1.63 billion compared to $1.23 billion in the first half of 2023. The enterprise application sector secured $933 million in funding during H1 2024, down by 10% from the $1.04 billion raised in H1 2023. Meanwhile, fintech funding saw a significant decline of 50%, dropping from $1.45 billion in H1 2023 to $726 million in H1 2024.
During this period, three new unicorns emerged, a significant rise from none in the first half of 2023. Bengaluru led the total funds raised during this period, followed by Delhi and Mumbai. The leading investors included Accel, Blume Ventures, and Peak XV Partners (formerly Sequoia Capital India & SEA) during this period.
