India startups raise USD 3.9 bn in VC funding in early 2024: GlobalData report

This represents a year-on-year (YoY) increase of 1.7 per cent in the number of deals and 15.6 per cent rise in the total funding value compared to the same period in 2023

India's burgeoning startup ecosystem has shown impressive resilience and growth post COVID, attracting a total of USD 3.9 billion in venture capital (VC) funding through 483 deals in the first five months of 2024, according to GlobalData. This represents a year-on-year (YoY) increase of 1.7 per cent in the number of deals and 15.6 per cent rise in the total funding value compared to the same period in 2023.

The latest analysis from GlobalData's Deals Database indicates that from January to May 2023, India saw 475 VC deals with a disclosed funding value of USD 3.4 billion. The increase in both deal volume and value for 2024 highlights renewed confidence among investors in India's dynamic startup landscape, which had experienced a period of slowdown in previous years.

Aurojyoti Bose, Lead Analyst at GlobalData, commented on the findings, saying, "With a double-digit YoY growth in VC funding value and some growth in deal volume, India's startup ecosystem seems to be gaining investor confidence after a period of slowdown." India's position as a key player in the global VC funding landscape has been further solidified, ranking among the top five markets worldwide in terms of both deal volume and value during the first five months of 2024.

The country accounted for 7 per cent of the total global VC deals and 3.7 per cent of the total disclosed funding value, underscoring its growing significance in the international startup ecosystem. Several high-profile funding deals have been a significant contributor to this upward trend. Among the notable deals, e-commerce giant Meesho secured USD 300 million, highlighting its dominance in the market.

Health-tech firm PharmEasy raised USD 216 million, reflecting continued growth in the online pharmacy sector. Renewable energy startup Radiance received USD 150 million, emphasising the increasing interest in sustainable energy solutions.

Additionally, audio content platform Pocket FM garnered USD 103 million, while Sedemac Mechatronics and logistics firm Shadowfax each secured USD 100 million, indicating robust investor interest in diverse sectors such as mechatronics and logistics. Bose also highlighted the concurrent growth in VC funding value in both India and China, suggesting a broader revival of investor interest across the Asia-Pacific (APAC) region.

"Interestingly, the top two APAC markets, China and India, have seen significant growth in VC funding value during the first five months of 2024. It could be an early indication that the old glory days are back for the APAC region. However, we will have to keep an eye on developments for some more months to see how the VC funding landscape unfolds," Bose added. Despite the positive trends, the market remains vigilant, aware that the figures for previous months might be adjusted due to delays in public disclosure of deals.

This highlights the fluid and dynamic nature of venture capital funding, necessitating continuous monitoring to stay abreast of the latest trends and insights. (ANI)

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