Indian tech start-ups secured $4.1 billion in funding in the first half of 2024 (January to June), a 4 per cent increase from $3.96 billion in the second half of 2023. This period also saw the emergence of three new unicorns and 17 IPOs. According to Tracxn, a market intelligence platform, India ranks as the fourth-highest funded country globally in the tech startup landscape, with the US, UK, and China leading in overall funding volumes.
April saw the highest monthly funding at $862 million in the first half of 2024. Bengaluru led the total funds raised, followed by Mumbai and Hyderabad. Key sectors driving performance in the first half of 2024 included retail, enterprise applications, and fintech, as per the report.
Neha Singh, Co-Founder of Tracxn, remarked that following four consecutive half-year periods of declining funding since H1 2022, we are now observing signs of stabilisation and an upward trend.
“Despite four consecutive half-year periods of declining funding since H1 2022, we are now showing signs of stabilisation, going upward. India's robust performance as the fourth-highest funded country in the tech startup ecosystem is encouraging,” she said.
Seed-stage funding increased by 6.5 per cent to $455 million compared to H2 2023, while early-stage startups maintained steady funding at $1.3 billion. Late-stage funding rose by 3.8 per cent to $2.4 billion from H2 2023, reveals the report.
The first half of 2024 also saw significant funding rounds exceeding $100 million, including the industries’ prominent players. Flipkart secured a $350 million round led by Google, Apollo 24/7’s $297 million round, and Meesho’s $275 million funding round. Logistics company Porter emerged as the third unicorn of the year, joining AI startup Krutrim and B2B SaaS company Perfios. Prominent IPOs during this period included TBO, TGIF Agribusiness, Radiowalla, and Trust Fintech.