Indian Startups Hit a Funding Jackpot in May: Surpass $1.3 Bn Mark

Curious about the latest surge in Indian startup funding? In May, investments hit a record $1.34 billion. Dive into the full story to explore this funding boom and its impact on the startup ecosystem!

Updated On
New Update
may2024 Funding

TICE Creative Image

In a much-needed boost for the Indian startup ecosystem, May witnessed a significant rise in funding, reaching a new high of $1.34 billion. This surge, driven by a few large deals and continued growth-stage investments, marks a positive turnaround after a period of relative slow down.


The industry data reveals a 29% month-on-month jump from April and a 32% increase compared to May 2023. This momentum is expected to continue, potentially reaching $12 billion by year-end, surpassing the $11.3 billion raised in 2023.

Among the top growth-stage deals, E-commerce giants like Flipkart (backed by Google) led the way with a $350 million investment, followed by significant funding rounds for SaaS firm Atlan ($105 million) and healthtech startup NephroPlus ($102 million). Specifically, D2C companies like TechnoSport and Libas were able to complete their first investment rounds indicating the increasing potential of this market.

Early-Stage Startups Outshine! 


While the top deals grabbed headlines, early-stage startups also saw promising investments. Agritech startup, Superplum, is one of the early-stage startups that has garnered impressive funding, raised $15 million in its Series A round, while UnifyApps secured $11 million in seed funding indicating that Indian innovation has a promising future.

Bengaluru's Startup Charm Continues

Bengaluru continues to be the hub for startup activity, contributing around 60% of the overall funding in May. E-commerce and fintech remain the dominant sectors, followed by SaaS, agritech, and healthtech.


Despite the positive outlook, challenges remain. Layoffs, particularly in edtech and fintech, continue to be a concern. This is a concern, but there's another factor to consider: the rise of artificial intelligence (AI). As AI becomes more advanced, it might automate some jobs, potentially leading to more layoffs in the future. However, the overall picture is still positive. May's funding boom shows that investors are still excited about the potential of Indian startups, and the diverse range of promising new businesses is encouraging.

Top Startup Funding in May

As per TICE, May offered a mix of positive and negative signs. While late-stage funding dipped, a wave of optimism swept through early to mid-stage startups. Investors seem to be placing their bets on promising young companies, with early-stage funding showing more activity.


Despite a challenging 2023, May 2024 showcased a mix of big and small deals across various sectors, indicating cautious investor optimism. Established players like Elevation Capital and Sequoia Capital participated alongside new entrants like Bharat Innovation Fund, highlighting a growing interest in the Indian startup landscape.

For a detailed insight about May's funding, here is a detailed Funding Index by TICE, have a look: