VC Funding In India Soars 42% To USD 6.3 Bn In Early 2024

New Delhi, Aug 28 (KNN) In a significant boost to India's start-up ecosystem, venture capital (VC) funding reached USD 6.3 billion across 672 deals during the first seven months of 2024, according to a recent report by GlobalData.

This represents a substantial 42.1 per cent year-on-year increase in funding value, despite only a marginal 1.2 per cent rise in deal volume.

The data, extracted from GlobalData's Deals Database, reveals a marked improvement from the same period in 2023, which saw 664 VC deals totalling USD 4.4 billion.

This upward trend suggests growing investor confidence in Indian start-ups, even as global markets maintain a cautious stance.

Aurojyoti Bose, Lead Analyst, GlobalData, attributed the significant jump in funding value to several high-profile investments.

"The massive increase in funding value, coupled with only modest growth in deal volume, indicates that while VC investors remain cautious, there is ample capital available for promising start-ups," Bose stated.

Notable transactions during this period included substantial investments in various sectors including e-commerce start-up Zepto raised USD 665 million, while social commerce platform Meesho secured USD 300 million.

Healthcare technology firm PharmEasy and renewable energy company Radiance attracted USD 216 million and USD 150 million, respectively.

Financial services provider Kogta Financial and mobility start-up Rapido also saw significant inflows of USD 148 million and USD 120 million.

India continues to solidify its position as a key player in the Asia-Pacific (APAC) region's VC landscape, second only to China.

Globally, it ranks among the top five markets in terms of both VC deal volume and value. For the January-July 2024 period, India accounted for 7 per cent of global VC deals and 4.3 per cent of the total disclosed funding value worldwide.

Bose concluded by highlighting India's resilience in the face of global economic uncertainties.

"India remains a pivotal market for VC activity, driven by a robust pipeline of promising start-ups that continue to attract significant capital. This trend reinforces India's position as a critical player in the global venture ecosystem," he noted.

The sustained growth in India's start-up funding, despite prevailing cautious investment sentiments globally, underscores the country's increasing importance in the international entrepreneurial landscape.

(KNN Bureau)