In terms of deal value, India was far behind the global average, which showed a staggering 161 per cent growth in the first seven months of the year over the same period last year. In terms of deal volume, too, India’s decline was far sharper than the global average drop of just 2 per cent during the same period.
As a result, India accounted for only 1 per cent of global VC funding value and 7 per cent of the total volume of deals in the first seven months of this year.
Aurojyoti Bose, lead analyst at GlobalData, explaining India’s lacklustre performance, said, “This performance reflected continued investor caution and sustained valuation discipline across the domestic ecosystem. While deal execution remained restrained, selective capital allocation towards fundamentally sound enterprises prevented an outright decline in aggregate deal value.”
However, he pointed out that globally, the seven-month period underscored a pronounced recovery in large-ticket financing rounds and improved investor confidence across the world’s innovation sectors. “It also cemented China’s position as the second-largest market in the VC landscape, standing just behind the US.”
China’s VC funding in January-July saw deal volumes rise 34 per cent year-on-year, while deal value surged 213 per cent. It accounted for 22 per cent of global deal volumes during the period and 9 per cent of global deal value. US was at the top of the charts, commanding 31 per cent of global deal volumes and 75 per cent of global deal value. In the country, deal values shot up 199 per cent, but volumes rose by only 2 per cent. The UK matched India in terms of deal volume but had a larger share of deal value, pegged at 3 per cent.
India’s big challenge has been to get investors to fund its emerging technology areas, from chip design and robotics to AI, despite government support. For instance, total funding in chip design companies since 2023 has been only $162 million.
 "Fintechs in the country have grown in the last decade, both in the number of entities and scale. The key growth sectors have been payments, credit, insurance and wealth management, fuelled by angel investors, venture capital (VC) and private equity.")