Indian startups witnessed a slight dip in funding during the first nine months of 2024. According to data from Tracxn’s India Tech 9M 2024 report, total funding fell by 7% to $7.6 billion, compared to $8.2 billion during the same period last year. Additionally, the number of funding rounds decreased significantly, from 1,579 in 2023 to 1,036 in 2024.

Comparative Global Perspective

To put these numbers in a global context, Indian startups received around one-tenth of the funding secured by US-based startups, which amassed a staggering $86.2 billion. On the other hand, India’s funding was closer to China’s $8.2 billion during the same period, indicating its competitiveness in the Asian startup scene.

Strong First Half Performance

By the end of the first half of 2024, Indian startups had already secured $4.1 billion across 540 rounds, highlighting a strong start to the year. However, the marginal decline in the overall nine-month performance indicates a slowdown in the third quarter.

Emergence of Unicorns and IPOs

Despite the funding dip, India’s startup ecosystem has seen notable successes in 2024. Six new unicorns emerged, and 29 companies went public through initial public offerings (IPOs). Among the standout performers, quick commerce platform Zepto raised around $1 billion, making it the only company to secure over $500 million in a single round this year.

Tech Sector Sees Significant Investments

The tech sector remained a key player in the funding scene, with 12 rounds valued at more than $100 million each. This trend showcases the continued interest in India’s growing tech ecosystem despite the overall slowdown in funding.

Fintech Sector Faces a Decline

One of the major sectors to see a drop was fintech. The space secured $1.49 billion in funding year-to-date (YTD) in 2024, marking a 39% decline from the $2.46 billion raised during the same period in 2023. This downturn reflects broader challenges facing fintech globally.