New Delhi: Indian tech startups raised $4.1 billion in the first half of 2024, up 4% from $3.96 billion in the second half of 2023, according to Tracxn's India Tech Semi-Annual Funding Report H1 2024. However, it is a 13% decrease from the $4.8 billion raised in the same period the previous year.
India, which was previously rated fourth in the world for tech startup funding, fell a spot as China raised more money.
China raised $6.2 billion in the first half of 2024 (January to June), making it the world's third-most funded country. Despite raising more funds, China had fewer funding rounds (327 versus 540 for India). India also has more first-time-funded startups than China, with 168 versus 159. The US remained the leader in overfunding.
India's strong performance as the fourth-most funded country in the tech startup ecosystem is encouraging. From rising innovations in retail and enterprise applications to pioneering advances in financial technology (fintech), Indian entrepreneurs are reshaping industries and driving economic growth," stated Neha Singh, Tracxn's co-founder.
According to the data consultancy firm, while seed-stage investment grew to $455 million, up 6.5% from the second half of 2023, early-stage firms received constant funding of $1.3 billion, which was consistent with the second half of 2023. The study stated that late-stage funding increased to $2.4 billion, up 3.8% from the second half of 2023.
Eight investment rounds totaling more than $100 million were completed during the first half of 2024. Notable investment rounds include Flipkart's $350 million Series J led by Google, Apollo 24|7's $297 million private equity round, and Meesho's $275 million Series F. Retail, enterprise apps, and fintech were the leading performers throughout this time period.
Among the sectors, retail funding increased by 32% to $1.63 billion, up from $1.23 billion in the first half of 2023. The enterprise application sector received $933 million in funding in H1 2024, a 10% decrease from $1.04 billion raised in H1 2023. Meanwhile, fintech funding fell 50%, from $1.45 billion in H1 2023 to $726 million in H1 2024.
During this time span, three new unicorns appeared, up from zero in the first half of 2023. Bengaluru raised the most funds during this time, followed by Delhi and Mumbai. During this time, the primary investors were Accel, Blume Ventures, and Peak XV Partners (previously Sequoia Capital India & SEA).
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