
In a notable shift, Indian tech startups have outpaced their Chinese counterparts in the number of funding rounds during the first half of 2024, as reported by Tracxn. Indian startups secured 540 funding rounds, surpassing the 327 rounds raised by Chinese startups. This shift comes amid a reduction in Western investment in China’s tech sector due to security concerns.
However, Chinese startups still led in total funding, raising USD 6.2 billion (approximately Rs 51,852 crore), compared to India’s USD 4.1 billion (around Rs 34,289 crore). This represents a 4 percent increase from the second half of 2023 but a 13 percent decrease from the first half of 2023. Despite this, India remains the fourth-highest funded country globally, following the US, the UK, and China.
The first half of 2024 saw significant milestones, including eight funding rounds exceeding USD 100 million. Flipkart led with a USD 350 million (approximately Rs 2927 crore) Series J round led by Google. Additionally, India saw the emergence of three new unicorns, a notable increase from none in the first half of 2023, and 33 new startups joined the soonicorn club.
Noteworthy acquisitions included PingSafe, acquired by SentinelOne for USD 100 million (around ₹836 crore), marking the highest-valued acquisition in the first half of 2024. Bengaluru led in total funds raised during this period, followed by Delhi and Mumbai. Prominent investors included Accel, Blume Ventures, and Peak XV Partners.
Retail, enterprise applications, and fintech were the top-performing sectors in the first half of 2024. Seed-stage funding increased to USD 455 million, up by 6.5 percent from the second half of 2023. Early-stage startups maintained steady funding of USD 1.3 billion, consistent with the second half of 2023, while late-stage funding rose to USD 2.4 billion, a 3.8 percent increase from the second half of 2023.
"Despite four consecutive half-year periods of declining funding since the first half of 2022, we are now showing signs of stabilization and upward movement. India's robust performance as the fourth-highest funded country in the tech startup ecosystem is encouraging," said Neha Singh, Co-Founder of Tracxn.
The period also saw significant IPO activity, with companies such as TBO, TGIF Agribusiness, Radiowalla, and Trust Fintech going public. This dynamic landscape highlights the resilience and potential of India's tech startup ecosystem, even amidst global funding challenges.
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