India’s Venture Capital Funding Soars 43% to $13.7 Billion in 2024
India’s venture capital (VC) ecosystem has demonstrated a remarkable recovery in 2024, with total funding reaching $13.7 billion, marking a 43% increase compared to the previous year, according to a new report by global consultancy Bain & Company released on Tuesday.
New Delhi: India’s venture capital (VC) ecosystem has demonstrated a remarkable recovery in 2024, with total funding reaching $13.7 billion, marking a 43% increase compared to the previous year, according to a new report by global consultancy Bain & Company released on Tuesday.
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Surge in Deal Activity and Volumes
The report highlights a surge in deal activity, with 1,270 transactions recorded in 2024, reflecting a 45% rise in deal volumes. This growth underscores India’s position as the second-largest market for venture capital and growth funding in the Asia-Pacific region. Despite 2024 funding levels in the region staying largely in line with 2023, India’s remarkable performance stands out.
The increase in deal volumes was observed across various deal sizes and stages, with the average deal size remaining stable. Notably, small and medium-ticket deals (less than $50 million) made up around 95% of all deals, increasing by 1.4x. Meanwhile, larger deals of $50 million and above almost doubled, returning to pre-pandemic levels, as high-quality assets drew substantial investments.
Rebound of Megadeals and High-Quality Investments
Megadeals (deals worth $100 million+) also saw a 1.6x increase, signaling a resurgence in investor confidence. This rebound was driven by investments in high-quality companies that had successfully weathered the funding challenges of the past two years, often referred to as the “funding winter.”
Policy Reforms Boost Venture Funding
Several policy reforms have significantly contributed to the positive momentum in India’s startup ecosystem. Key reforms include eliminating the angel tax, reducing Long-Term Capital Gains (LTCG) tax rates, simplifying the Foreign Venture Capital Investor (FVCI) registration process, and removing hurdles within the National Company Law Tribunal (NCLT) framework.
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These reforms have created a conducive environment for startups and investors, supporting India’s long-term growth strategy, which focuses on profitability, innovation, and regulatory alignment.
Sriwatsan Krishnan, Partner at Bain & Company, commented, “Investors are increasingly backing companies that exhibit strong unit economics and resilience in the face of global macroeconomic challenges.”
Consumer Technology Dominates Funding Landscape
In 2024, consumer technology emerged as the dominant sector, attracting a massive $5.4 billion in funding, more than double compared to 2023. The sector saw a 4x surge in $100 million+ deals, driven by investments in quick commerce, edtech, and B2C commerce.
Prominent companies like Zepto, which secured $1.4 billion, Meesho with $275 million, and Lenskart with $200 million, were among the key players in the consumer tech space.
Growth in Software, SaaS, and Traditional Sectors
Funding in Software and SaaS (including generative AI) maintained strong momentum, increasing by 1.2x to $1.7 billion. This growth was driven by rising customer spending on development tools and maturing international market strategies.
In addition, traditional sectors like BFSI (Banking, Financial Services, and Insurance) and consumer/retail saw significant increases, with investments in affordable housing finance, green financing initiatives, and fashion.
India’s Exit Landscape Grows Stronger
India’s exit landscape also showed impressive growth in 2024, with exit values reaching $6.8 billion. Public markets played a central role, accounting for three-fourths of the exit value. IPOs surged 7x as several venture-backed companies successfully listed, further solidifying India’s status as a maturing startup ecosystem.
A Phase of Disciplined Growth
The report concludes that India’s venture capital market is entering a phase of disciplined growth, with investors prioritizing financial sustainability, operational excellence, and clear exit pathways. The broader ecosystem is expected to continue maturing, with an increasing focus on strong governance, scalable operations, and sustainable growth models.
India’s thriving VC sector is set to remain a key player in the global venture funding landscape, with promising opportunities for startups and investors alike.
