The next six months are crucial for maintaining the momentum in VC funding for Indian Startups.
MUMBAI (India CSR): The first half of 2024 has been a promising period for Indian startups, witnessing a significant boost in venture capital (VC) funding. The sector saw a 45% increase in funding compared to the previous six months, signaling a recovery from the prolonged funding winter. This report delves into the details of this upward trend and its implications for the Indian startup ecosystem.
VC Funding Trends and Figures
Indian startups raised a total of $6.4 billion in VC funding during the first six months of 2024, a considerable increase from the $4.4 billion secured in the latter half of 2023. This growth, although just a 1.5% rise compared to the $6.3 billion raised in the first half of 2023, marks a positive shift following a 66% decline in the second half of 2022.
| Period | VC Funding Amount | % Change from Previous Period |
|---|---|---|
| H1 2024 | $6.4 billion | +45% |
| H2 2023 | $4.4 billion | – |
| H1 2023 | $6.3 billion | +1.5% |
| H2 2022 | – | -66% |
Steady Monthly Growth
Month-on-month, VC funding has consistently grown in 2024, with May and June alone surpassing the $1 billion mark each. These developments suggest a strong finish for the year, potentially exceeding the $10.8 billion total of 2023.
Sector-Specific Investments
Fintech and ecommerce sectors led the funding wave in H1 2024. The fintech sector secured $1.4 billion, while ecommerce followed closely with $1.1 billion. Other notable sectors included direct-to-consumer (D2C) with $523 million and healthtech with $504 million.
Major Deals and Investment Distribution
A total of 665 deals were made in the first half of 2024, with only eight deals exceeding $100 million. Zepto, a quick commerce unicorn, topped the list with a $665 million raise, followed by Meesho with $275 million and Lenskart with $200 million. Other significant deals included Pharmeasy, Capillary Technologies, PocketFM, Nephroplus, and Shadowfax, each securing over $100 million.
| Sector | Funding Amount |
|---|---|
| Fintech | $1.4 billion |
| Ecommerce | $1.1 billion |
| D2C | $523 million |
| Healthtech | $504 million |
The funding landscape saw varied stage-wise investments: $2.4 billion in late-stage funding, $1.4 billion in growth-stage, $1.6 billion in early-stage, and $870 million in the debt segment. Early-stage funding, with 492 deals, remained the most active but had a lower total funding amount compared to other stages.
Geographic Distribution
Bengaluru continued to dominate VC funding, followed by Mumbai and Delhi-NCR. Emerging startup hubs like Chennai, Pune, and Hyderabad also witnessed significant VC activities, contributing to the overall growth.
Outlook for the Second Half of 2024
The next six months are crucial for maintaining the momentum in VC funding. If this trend continues, Indian startups could potentially surpass the 2023 funding figures, further solidifying the recovery from the previous funding winter.
| Company | Funding Amount |
|---|---|
| Zepto | $665 million |
| Meesho | $275 million |
| Lenskart | $200 million |
| Pharmeasy | >$100 million |
| Capillary Tech. | >$100 million |
| PocketFM | >$100 million |
| Nephroplus | >$100 million |
| Shadowfax | >$100 million |
(India CSR)
