Indian Tech Funds Rise 4% Higher In H1 2024: Tracxn

At $ 4.1 billion, India still remains the fourth-highest funded country globally in the tech startup landscape, it said.

<div class="paragraphs"><p>Image for representation purposes </p><p>(Photo: Vijay Sartape/NDTV Profit)</p></div>
Image for representation purposes

(Photo: Vijay Sartape/NDTV Profit)

Indian tech startups raised a total $ 4.1 billion in H1 2024, 4% higher than H2 2023, although the numbers still trailed the levels seen a year ago, according to a report by market intelligence platform Tracxn.

At $ 4.1 billion, India still remains the fourth-highest funded country globally in the tech startup landscape, it said.

The United States led in overall funding volumes, followed by the UK and China.

"Indian tech startups raised USD 4.1 billion in H1 2024, a 4% increase from USD 3.96 billion in H2 2023. Though there was a 13% decrease compared to USD 4.8 billion raised in H1 2023, India still remains the fourth-highest funded country globally in the tech startup landscape," the Tracxn report said.

Tracxn, India Tech Semi-Annual Funding Report H1 2024 offered insights on funding trends, sector performances, and notable developments in the Indian technology sector for the said period.

Citing key trends, it said seed-stage funding increased to $ 455 million, up by 6.5% from H2 2023 but down 17.3% from H1 2023.

Early-stage startups were at a steady USD 1.3 billion, consistent with H2 2023 but 28% lower than H1 2023.

Late-stage funding rose to USD 2.4 billion, marking a 3.8% increase from H2 2023, although it saw a slight 1.3% drop compared to H1 2023.

"Despite these challenges, the first half of 2024 witnessed 8 funding rounds surpassing USD 100 million such as Flipkart’s USD 350 million Series J round led by Google, Apollo 24|7’s USD 297 million PE round, and Meesho’s USD 275 million Series F round," it said.

Neha Singh, Co-Founder of Tracxn noted that despite four consecutive half-year periods of declining funding since H1 2022, signs of stabilisation are indeed becoming visible, and on the rise.

"India’s robust performance as the fourth-highest funded country in the tech startup ecosystem is encouraging. From emerging developments in retail and enterprise applications to pioneering advancements in fintech, Indian startups are transforming industries and driving economic growth," she said.

In H1 2024, 3 unicorns emerged, a notable rise from none in H1 2023, alongside 33 new additions to the 'Soonicorn' club (in industry parlance, startups that are likely to become unicorns soon).

The number of IPOs also rose to 17 in H1 2024, from 6 in H1 2023 and 12 in H2 2023.

Acquisitions in the Indian startup ecosystem saw a decline, with 43 acquisitions in H1 2024, compared to 75 acquisitions in H1 2023. Notable acquisitions included PingSafe, being acquired by SentinelOne for USD 100 million, marking the highest valued acquisition in H1 2024, followed by PureSoftware acquired by Happiest Minds for USD 94.5 million.

Among cities, Bengaluru took the pole position, in total funds raised during the period, followed by Delhi and Mumbai.

The overall top investors in H1 2024 were Accel, Blume Ventures and Peak XV Partners, according to the report.

In the seed stage, Venture Catalyst, Z Nation Lab and We Founder Circle were the top investors. Peak XV Partners, Alpha Wave Global and Saama Capital are the most active early stage investors in H1 2024.

DST Global, Epiq Capital Advisors and UC-RNT Fund are the leading investors actively involved in late-stage investments in H1 2024, the report said.

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