October 3, 2024: Indian startups have shown remarkable strength in the third quarter of 2024, raising over $4.08 billion despite ongoing economic challenges. This amount is nearly equivalent to the previous quarter’s total and surpasses the funding raised in the first quarter of the year. The landscape featured numerous significant deals, including multiple transactions exceeding $300 million and $200 million, as well as active pre-IPO rounds and secondary market activities.
Key Highlights:
- Funding Milestones: Indian startups raised approximately $4.08 billion in Q3 2024, marking a significant achievement amidst the funding winter.
- Emerging Unicorns: Three new unicorns—Ather, Rapido, and Moneyview—joined the ranks this quarter, all hailing from Bengaluru.
- Strong Investor Confidence: The report indicates a strong recovery, particularly in early-stage startups, emphasizing renewed investor interest.
- M&A Surge: Merger and acquisition activity reached new heights, with 54 deals recorded in Q3 alone, reflecting a vibrant market environment.
According to TheKredible, the third quarter comprised 352 deals and ranks as the second most funded period in the last seven quarters. September alone contributed $1.63 billion to the total funding, trailing only behind June’s peak of $1.92 billion.
Indian Startups 2024 Funding Report : Notable Deals and Growth Stage Insights
Leading the charge was Zepto with an impressive $340 million funding round, closely followed by DMI Finance, which raised $334 million. Other significant contributors included PhysicsWallah, Oyo, and Whatfix.
The early-stage sector also demonstrated vigor, with 207 deals totaling $754.26 million. The renewable energy services company BluePine led this category with $28.8 million in funding. Other emerging players included Nutrix AI, Kinetic Green, and Centricity, showcasing the diversity of sectors attracting investment.
Bengaluru: The Leading Startup Hub
Bengaluru continues to reign supreme as the leading startup hub, with 122 startups raising over $1.38 billion in Q3, accounting for 34% of total funding. Delhi-NCR closely followed with 91 deals totaling $1.3 billion. Notably, Mumbai, Hyderabad, Chennai, and Pune also made significant contributions, with Mumbai startups representing more than 21% of total funding.
Sector Trends and Challenges
- Fintech Dominance: The fintech sector led with 61 startups raising over $1.15 billion, followed by e-commerce, healthtech, and AI.
- Decline in Agritech: Agritech remains one of the least funded segments, raising only 1.39% of the total funds. In contrast, edtech secured $233 million, primarily driven by PhysicsWallah’s significant funding.
- Layoffs and Shutdowns: While layoffs affected 1,200 employees across ten companies, this figure is lower than previous quarters. Additionally, eight startups announced closures, including Koo and Wynk Music.
Trends to Watch
- Wealthtech Growth: Wealthtech startups are witnessing a surge, raising over $100 million in Q3 alone.
- IPO Buzz: Bengaluru is making waves in the IPO scene, with companies like Ola Electric and Digit Insurance already listed, and others like Ather and Swiggy preparing for IPOs.
- Innovative Initiatives: Titan Capital launched Indicorns, showcasing profitable startups, while BharatPe has resolved disputes with its former co-founder, further stabilizing its position.
The Q3 2024 funding landscape for Indian startups demonstrates resilience and adaptability amid challenging economic conditions. With a mix of significant funding rounds, emerging unicorns, and increasing investor confidence, the Indian startup ecosystem is poised for continued growth and innovation in the coming quarters.
