In 2024, the Indian startup ecosystem recovered strongly, with funding exceeding $12 billion across 993 deals.
According to the fresh annual report from Inc42, Indian startups collectively attracted funding over $12 billion across 993 deals in 2024, a 20% increase from 2023. Additionally, six new unicorns emerged in the local startup ecosystem, tripling the number from the year before.
This growth indicates a shift from the market corrections of the previous year. At the same time, as other media reports noted earlier, Indian startups experienced a 32% decline in funding rounds in 2024 compared to the previous year, although the aggregate funding amount itself grew. This indicates that VC investors are adopting a more discerning approach. They are becoming more cautious, concentrating on startups with solid foundations and clear routes to profitability. As a result, investors may be directing larger sums of funding to a smaller group of companies, particularly those in sectors or with businesses they see as having long-term potential.
The startups which earned the most VC interest last year include India’s software-as-a-service (SaaS) sector, which saw funding rising by 31.25% year-on-year to $2.1 billion. Despite the overall decline, the number of deals in this segment also increased modestly, by 5% year-on-year, to reach a total of 207.
Notably, women-led startups raised around $930 million across 136 deals in 2024, reflecting a significant 93,75% increase from the previous year ($480 million across 118 deals). This surge highlights growing investor interest in diverse entrepreneurship and reflects a broader trend of supporting women-led businesses.
The fintech sector received the largest portion of funding for women-led startups, accounting for 28.7% or $266.91 million in 17 deals. It was followed by e-commerce, with 22.8% or $212 million in 53 deals, and enterprise tech, which secured 14% or $130 million of the total funding. Health tech received 11% of the total funding, amounting to $102.3 million, while cleantech secured 14.1% or $130.93 million.
Looking ahead to 2025, the Inc42’s Annual Investor & Founder Survey highlighted strong optimism, with 91% of investors and 82% of founders expecting increased investment activity. Funding for Indian startups is projected to reach $15 billion in 2025, marking a 25% rise from 2024.
To boost investment prospects and improve their operational activity, 94% of Indian startups on record adopt generative artificial intelligence (AI) tools, as startups dealing with AI solutions are still highly preferred among early-stage deals.
