Funding Hits $11.3B: Late-Stage Surges 25%, Seed & EV Funding Decline

In a year marked by mixed fortunes, the Indian startup ecosystem witnessed notable shifts in funding patterns. While late-stage funding surged by 25% to over $7 billion in 2024, the overall number of mega funding deals stagnated year-on-year, reflecting the continued cautious approach of venture capitalists navigating a post-pandemic economic landscape.

Mega Deals 2024: A Steady Yet Reduced Performance

Indian startups secured 24 mega deals in 2024, marginally higher than the 23 deals recorded during the funding winter of 2023. However, this figure pales in comparison to the 109 mega deals inked in 2021 and the 60 in 2022. These deals accounted for 38% of the total funding, contributing $4.6 billion to the ecosystem, as per the latest Tracxn report. The stagnation in mega deals highlights the recalibration of investor priorities, with a shift towards pre-IPO and late-stage investments offering better liquidity and returns. This strategic pivot underscores the growing appetite for lower-risk opportunities amidst a volatile global market.

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Early and Growth-Stage Funding: Mixed Signals

Early-stage startups were among the biggest winners this year, raising $893 million across 433 deals, a 31% year-on-year increase. Growth-stage startups also secured $3.5 billion in 282 deals. Yet, seed funding experienced a sharp 25% decline, signalling reduced enthusiasm for nascent ventures.

Sectoral Trends: Fintech and Consumer Services Lead

Fintech dominated the funding landscape, attracting $2.5 billion across 162 deals, followed by enterprise tech and consumer services, which raised $1.8 billion each. The electric vehicle (EV) sector, however, saw a steep funding decline from $934 million in 2022 to $586 million in 2024. Policy changes and slower sales growth have driven investors to focus on unit economics and profitability before deploying capital.

Weekly Funding Snapshot | December 23rd to 28th 

Between December 23 and 28, Indian startups raised $25.9 million across six deals, a steep 85% drop from the previous week's $171.2 million raised through 20 deals. Notably, Zerodha cofounders Nithin and Nikhil Kamath emerged as the most active investors during this period. Despite the decrease in weekly funding, two startups filed for IPOs, indicating sustained interest in public offerings.

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Startup IPOs 2024: A Landmark Year

The Indian startup ecosystem celebrated a robust year for IPOs, with 13 startups collectively raising more than ₹29,200 crore. This marks a significant rise from six IPOs in both 2022 and 2023. Swiggy’s ₹11,327.43 crore IPO was the largest, debuting at a 7.69% premium. Other notable IPOs included FirstCry, Digit Insurance, and Ola Electric.

Unicorns: A Return to Growth

India’s tech ecosystem birthed six unicorns in 2024, a dramatic rebound from the two unicorns minted in 2023. Zepto stood out, raising $1.3 billion across three funding rounds, emphasising its resilience and market leadership.

Funding in H2 2024: A Modest Upswing

The second half of 2024 saw tech startups secure $5.32 billion across 540 funding rounds, an 8% increase from H2 2023. This growth, though moderate, reflects a steady recovery and increasing investor confidence.

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Startup Funding 2025: Challenges and Opportunities 

Despite a 6% rise in overall startup funding to $11.3 billion, the funding landscape remains challenging. Weekly funding volumes dipped significantly in late December, with startups raising just $25.9 million across six deals, an 85% drop from the previous week.

Yet, the ecosystem’s resilience is evident. The Department for Promotion of Industry and Internal Trade (DPIIT) has now recognised 157,066 startups, including over 73,000 with at least one woman director. As the Indian startup story evolves, balancing innovation with sustainable growth will be key to attracting global capital and nurturing the next wave of unicorns.