India’s Tech Startup Funding Rebounds Strongly in First Half of 2024: Report

India's tech startups raised $4.1 billion in funding in H1 2024.

  • India’s tech startups raised $4.1 billion in funding in H1 2024.
  • Funding increased across seed, early, and late stages, with significant contributions from sectors like Retail and FinTech.
  • The number of IPOs rose, but acquisitions saw a decline.

India’s tech startup ecosystem saw a robust resurgence in funding during the first half of 2024, according to Tracxn’s latest report. Startups in the country raised $4.1 billion, marking a 4% rise from the previous half-year period. However, this figure represents a 13% decrease compared to the same period in 2023.

Bengaluru emerged as the top city for funding, followed by Mumbai and Hyderabad, reflecting the geographical diversity of India’s startup landscape. Key sectors driving this growth included Retail, Enterprise Applications, and FinTech, which collectively attracted significant investor interest.

The funding distribution across stages showed promising signs:

  • Seed-stage funding increased to $455 million.
  • Early-stage funding remained stable at $1.3 billion.
  • Late-stage funding surged to $2.4 billion, indicating growing investor confidence in scaling startups.

Despite economic uncertainties, the report noted eight funding rounds exceeding $100 million. Notable among these was Flipkart’s $350 million Series J round led by Google. Additionally, the period witnessed the birth of three new unicorns and 33 companies nearing unicorn status.

On the market front, there were 17 IPOs, including notable listings by TBO and TGIF Agribusiness. However, acquisitions saw a decline, with 43 significant deals recorded. Among these transactions, PingSafe’s acquisition by SentinelOne for $100 million stood out.

Investors such as Accel, Blume Ventures, and Peak XV Partners continued to play pivotal roles, underscoring their confidence in India’s burgeoning startup ecosystem.

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