India's Tech Startups Experience Funding Surge in the First Half of 2024

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India's Tech Startups Experience Funding Surge in the First Half of 2024

India's tech startup scene saw a significant funding surge in the first half of 2024, with a total of $4.1 billion raised during this period, as highlighted in Tracxn's India Tech Semi-Annual Funding Report. This amount represented a 4% increase from the funding raised in the latter half of 2023 but marked a 13% decline from the funds raised during the same period in the previous year. Despite facing challenges, the sector witnessed eight funding rounds exceeding $100 million.

In terms of global rankings, India is positioned as the fourth-highest funded country in the tech startup sector, trailing behind the United States, the UK, and China. Bengaluru emerged as the top city for funds raised, with Mumbai and Hyderabad following suit. The leading sectors in H1 2024 were Retail, Enterprise Applications, and FinTech, attracting significant investment from various sources. Seed-stage funding increased to $455 million, early-stage funding remained steady at $1.3 billion, and late-stage funding rose to $2.4 billion, indicating a broad spectrum of support for startups at different growth stages.

The funding landscape in India also saw the birth of three new unicorns and 33 companies making strides towards joining the coveted unicorn club. Notable funding rounds included Flipkart securing a $350 million Series J round led by Google. The period also witnessed a rise in IPOs, with 17 public listings taking place, including TBO and TGIF Agribusiness. On the other hand, acquisitions experienced a decline, with only 43 notable deals recorded. Top investors like Accel, Blume Ventures, and Peak XV Partners continued to show confidence in India's tech startups, contributing to the sector's growth and development.