Indians startup secure record level of 9.2 billion

Indian startups have burst onto the scene in the past decade making India one of the third-largest global start hubs. Indian startups secured a funding of nearly 9.2 billion dollars between 984 deals in the first 10 months of 2024, a 44.4 percent increase from last  year’s around the same time.
The Indian startups witnessed a 5.8 percent surge in VC deals from last year, where only 930 deals worth $6.4 billion went down between VC and startups. The rate of high value investments indicate growing investor confidence in Indian startups that was lacking a few years ago. The reinstatement of Modi as India’s leader and the continuous attempt to reduce bureaucracy and red tape from its economic systems have made Indian startups attractive to foreign investors.
Globally, India accounted for 7.1 percent of the total VC deals and 4.2 percent of all the funding that was disclosed to the public in the first 10 months of this year. Out of the 984 deals that occurred this year, the most remarkable round of funding included Zepto a Q-commerce company based in Mumbai, that received a grand finding of around $1 billion dollars over two separate funding rounds first of $665 million in June, followed by an additional $340 million in August.
Similarly, Messho, an e-commerce company based in Bangalore received a hefty sum of $300 million in VC funding, PharmEasy, an e-pharmacy was allocated $216 million in VC capital, PhysicsWallah, an ed-tech company headquartered in Noida received $210 million and Purplle’s, an online cosmetic store received a total of $178.4 million in funding.
The number of high value deals that were above $100 million between foreign and domestic investors and Indian startups saw a 45 percent increase, going from 11 deals a year ago to 16 deals this year.
“Investor confidence seems to be reviving as India demonstrates significant improvement in VC funding activity during the year compared to peer countries. In fact, it was among the few key markets that witnessed the improvement in both deal volume and value during January-October 2024,” Aurojyoti Bose, lead analyst at GlobalData, told Business Standard in an interview.
The increase in the volume of deals and the sum of capital invested into Indian startups come as a positive sign to India that aims to maintain its position as leading startup hub across the globe.