Indian Startups Raise $7 Billion in H1 2024, Marking a Significant Increase from Last Year
Indian startups have raised nearly $7 billion in funding during the first half (H1) of 2024, surpassing the $5.92 billion garnered in the same period last year. Despite this increase, the figures remain significantly lower than the $20 billion raised in H1 2022, according to data compiled by TheKredible.
The $7 billion funding comprised 182 growth or late-stage deals amounting to $5.4 billion and 404 early-stage deals totaling $1.54 billion. Additionally, there were 99 undisclosed deals, as reported by Entrackr.
In H1 2024, Indian startups saw the emergence of two new unicorns: Perfios and Krutrim SI Designs. This mirrors the trend in 2023, which also saw two startups achieving unicorn status. However, this number is a marked decline from the 26 unicorns in 2022 and 44 in 2021.
June was a standout month, with nearly $2 billion in funding, more than doubling the average monthly funding of $1 billion seen until May. Prominent late-stage companies such as Zepto, Flipkart, PharmEasy, and Lenskart secured significant investments, raising $665 million, $350 million, $216 million, and $200 million, respectively.
The first half of 2024 also saw 55 mergers and acquisitions, a reduction compared to previous years. There were over 250 such deals in 2021, dropping to 204 in 2022 and further to 145 in 2023.
Segment-wise, the e-commerce sector led the funding race with 124 startups raising over $1.87 billion. Fintech, healthtech, SaaS, and EV startups followed. In terms of funding amounts, EV startups outpaced SaaS and healthtech. However, sectors like agritech, foodtech, edtech, and proptech experienced a decline in funding during the first half of 2024.
The trends suggest a shifting focus in investor preferences towards growth and late-stage startups, with a continued strong interest in sectors like e-commerce and EVs.