India’s startups have raised nearly $10 billion in funding till October, which could surpass last year’s total funding figure of $10.5 billion. Despite the decrease in funding in the last two years, this increase shows a state of renewal and optimism in the startup ecosystem.
According to Tracxn data, startups received investments through 1,220 funding rounds as of October, of which 18 rounds were worth more than $100 million. This number is equal to the number of large deals recorded in the entire year of 2023. This increase in large deals indicates that the “funding winter” that has been affecting the startup sector for the past few years may now be over.
In the same period last year, startups had raised about $8.8 billion across 1,837 rounds as investors leaned towards smaller deals. Funding in 2023 is set to be at a five-year low, compared to a record $42 billion in 2021 and about $25 billion in 2022.
The peak of funding was seen in June of 2023, when startups raised $1.57 billion across 131 rounds. The first half of 2024 comprised nearly 70% of the total funding rounds and more than half of the total amount raised. The number of rounds dropped in October, with just 60 deals raising about $616 million.
While the number of rounds declined in the second half of the year, the size of deals grew larger. In August and September, startups raised $1.3 billion across 94 and 96 rounds, respectively. Among the significant large deals was Zepto’s $340 million Series G round, which followed its earlier $665 million Series F round.
Other major funding rounds in August and September included DMI Finance’s $334 million Series E round, Physics Wallah’s $210 million Series B round, and Whatfix’s $125 million Series E round. Investor interest remains primarily in the consumer and retail sectors, with enterprise applications also gaining attention.