VC funding for Indian startups up 42% to $6.3 bn in Jan-July: GlobalData

Investment growth despite a cautious global investment climate, says analytics company

Indian startups raised $6.3 billion through 672 venture capital (VC) deals in January-July to mark an almost 43 per cent year-on-year increase in funding, according to a data and analytics company.

 

The growth comes despite a cautious global investment climate that recorded a mere 1.2 per cent growth in deal volume and reflects investor confidence in India's potential, according to GlobalData.

 

India, in January-July 2023, recorded 664 VC deals with a disclosed funding value of $4.4 billion, according to an analysis of GlobalData’s Deals Database.

 

"Even though VC investors remain cautious, there is no dearth of money for promising startups,” said Aurojyoti Bose, lead analyst at GlobalData.   

 

Notable VC deals this year include quick commerce firm Zepto raising $665 million funding, e-commerce startup Meesho getting $300 million, and online pharmacy PharmEasy $216 million.

 

The increase in funding value despite a 1.2 per cent growth in deal volume can be attributed to big-ticket deals, said Bose.

 

India accounted for 7 per cent of the total VC deals announced globally in January-July 2024; the country’s share of the corresponding disclosed funding value stood at 4.3 per cent.

 

“India, apart from being a key Asia-Pacific market for VC funding activity, standing just next to China, is also one of the top five markets globally in terms of both VC funding deal volume and value," said Bose.

 

India remains a “pivotal market” for VC activity, driven by a robust pipeline of promising startups that continue to attract significant capital despite global economic uncertainties. The trend reinforces India’s position as a critical player in the global venture ecosystem, demonstrating resilience and growth even amid cautious investment sentiment, added Bose.