India’s venture capital (VC) landscape during the first half (H1) of 2024 highlights a strategic shift towards relatively larger investments, as reflected by the 45.3% increase in disclosed funding value year-on-year (YoY) despite a 2.1% drop in deal volume. This trend signifies investors’ growing confidence in high-potential startups, with significant deals like Zepto’s $665 million and Meesho’s $300 million fundraisings pointing to a robust future for the Indian startup ecosystem, says GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database revealed that India witnessed the announcement of a total of 572 VC deals of worth $5.6 billion during H1 2024 compared to 584 VC deals of worth $3.8 billion in H1 2023.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “The massive jump in VC funding value despite a decline in deal volume can be seen as an indicator of improving investors’ appetite for big investments while also adopting a cautious approach. This can also be understood from the fact that the average size of VC deals increased from $6.5 million in H1 2023 to $9.7 million in H1 2024.”
Some of the notable VC funding deals announced in India during H1 2024 include $665 million worth of funding raised by Zepto, $300 million raised by Meesho, $216 million raised by PharmEasy, $150 million raised by Radiance, and $148 million raised by Kogta Financia.
Bose adds: “India, apart from being a leading APAC market for VC funding activity and standing just next to China in terms of both deals volume as well as value, is also among the top five markets globally.”
India accounted for 7% share of the total number of VC funding deals announced globally during H1 2024 while its share of the corresponding disclosed funding value stood at 4.4%.
Bose concludes: “As investors continue to pour substantial funding into promising startups, it underscores the improving confidence in India’s market potential. This not only bolsters the country’s standing in the global VC landscape but also sets the stage for a vibrant and resilient startup ecosystem poised for dynamic growth in the coming years.”
