“India’s Venture Capital Growth Soars to $16.77 Billion in 2024”
New Delhi, December 28: Venture capital (VC) investments in India have experienced a remarkable rise in 2024, with total funding reaching USD 16.77 billion across 888 deals from January to November, as reported by the India Brand Equity Foundation (IBEF). This represents a 14.1% increase in value and a 21.8% surge in deal volume compared to the same period last year.
The technology sector led the charge, attracting USD 6.50 billion, which marks a significant 52.5% year-over-year growth. Investments in the consumer discretionary sector followed closely at USD 2.30 billion, reflecting a 32.2% increase, while the financial sector saw a slight decline to USD 2.20 billion. Some of the largest deals included KiranaKart Technologies (Zepto) raising USD 1.3 billion and Poolside AI SAS securing USD 500 million.
Industry leaders are optimistic about the venture capital landscape in India continuing to grow into 2025. Experts foresee an increase in initial public offerings (IPOs) and more activity in late-stage funding rounds, as cautious investors gradually begin to deploy capital. Notable figures in the startup ecosystem, such as Bhaskar Majumdar and Sajith Pai, predict a positive shift in the market as conditions ease.
Despite concerns about India’s economic reliance on the “India1” segment—around 30 million households that significantly contribute to the country’s GDP—confidence remains strong, buoyed by strong savings rates and capital inflows. Emerging industries, including electric mobility and green hydrogen, present new opportunities, while traditional sectors like fintech and e-commerce continue to capture investor attention.
Moreover, deep tech areas such as robotics, drones, and semiconductor technologies, which are driven by intellectual property (IP), are gaining momentum. As the global landscape evolves, experts anticipate challenges and opportunities arising from shifts in international capital flows, particularly in the wake of the new US administration’s policies.
In contrast, China’s venture capital sector has experienced a notable slowdown in 2024, with 2,313 deals and USD 32.3 billion in disclosed funding between January and November, according to a report by GlobalData. This marks a significant decline, with a 23.1% drop in deal volume and a 22.5% decrease in funding value compared to the same period in 2023.
While the downturn in China’s VC ecosystem reflects a tough year influenced by regulatory crackdowns, macroeconomic challenges, and subdued market conditions, the country remains a significant player globally. China accounted for 15.2% of all global VC deals and 13.6% of total funding value during this period.
Key deals in China included substantial investments such as USD 1.5 billion raised by Changxin Technology, USD 1.4 billion secured by AVATR, and USD 1.1 billion raised by IM Motors. Despite the challenges, these deals underline China’s continued importance in the global venture capital market, second only to the United States in both deal volume and value.
As the venture capital landscape evolves in India and globally, both challenges and opportunities await investors, entrepreneurs, and industries across various sectors. The focus on high-growth areas like technology and deep tech is expected to drive further interest in Indian startups in the coming year.
