YourStory's annual funding report: Indian startups raised $13.2B in 2024, IPOs took centre stage
In 2024, the Indian startup ecosystem saw a revival in funding after the brutal 2023, indicating that VCs are backing the generation of innovators.
Thimmaya Poojary
Wednesday January 15, 2025 , 2 min Read
In 2024, Indian startups witnessed a revival in funding, raising $13.2 billion, a 22% increase from 2023’s $10.8 billion, overcoming the ‘funding winter’ freeze. While modest compared to previous years, it was certainly a period of relief given that the ecosystem saw a 52% decline in funding in 2023 compared with 2022.
The year began cautiously, with Q1 recording the lowest inflow at $2.4 billion, but the momentum gradually picked up, with the third quarter seeing the highest inflow at $4 billion, indicating growing investor confidence.
Stage-wise, while late-stage startups continued to garner the bigger cheques, mopping up $5.1 billion, early-stage startups came second with $3.4 billion.
For the first time, Mumbai dethroned Bengaluru as the top city for startup funding, largely due to the $1.3 billion raised by Zepto.
A striking trend in 2024 was IPOs outperforming unicorns, as 13 startups went public, as opposed to just 6 new entrants to the $1-billion club. This underscored the ecosystem’s growing maturity and focus on sustainable growth.
Mumbai dethrones Bengaluru for the first time.
From a quiet backwater in the late 2000s, India’s startup ecosystem has become a global force, raising over $150 billion between 2014 and 2024.
Just two weeks into the new year, startups have already raised $115 million, with the first unicorn sighting imminent. However, macroeconomic conditions may challenge growth in the first half, with recovery expected later in the year.
For a detailed analysis and deeper insights into key trends shaping the ecosystem, download YourStory Research’s Annual Funding Report 2024.