The Indian venture capital (VC) ecosystem in 2024 has continued to grow and evolve, showing resilience despite global economic uncertainties. The "IVCA Indian VC Landscape Report 2024" highlights the key trends, sector performance, and challenges while providing a roadmap for the future. From increasing investments to notable regulatory reforms, the report sheds light on how India is shaping up as a global hub for startups and innovation.
This guide unpacks the 2024 Indian VC report, summarizing its insights into sectoral growth, funding trends, geographic dynamics, regulatory changes, and what lies ahead for stakeholders in India’s vibrant VC ecosystem.
1. Overview of India’s VC Landscape: IVCA Report


India’s VC ecosystem witnessed remarkable growth in 2024. The total number of VC deals rose to 536, a 16.5% increase from 460 in 2023, while investment value surged by 29.5%, reaching ₹19,900 crore ($2.38 Bn) from ₹15,371 crore ($1.85 Bn).
While funding has recovered from the lows of 2023, it still remains significantly below the record levels seen in 2021-22.
However, exits fell to 72 from 82, with harvest values decreasing to ₹21,974 crore ($2.62 Bn) from ₹28,993 crore ($3.51 Bn) in 2023. The technology sector remained a dominant force throughout.
A major highlight was the Indian government’s decision during the Union Budget 2024 to abolish the angel tax for all investors, effective FY 2025-26. This landmark reform is expected to unlock new opportunities for startups.
Additionally, the ₹1,000 crore ($117 Mn) VC fund dedicated to the space sector has further bolstered investor confidence, ensuring India remains at the forefront of innovation in the space technologies.
We saw a large number of startups on path to profitability through 2023-24. Balanced valuations and high deal activity were observed - Ashish Fafadia, Blume Ventures
Quality of startups has significantly improved and founders are focusing on building long term, sustainable business with IPO ambitions - Kanika Mayar, Vertex Ventures
India has significantly recovered the funding winter with $15Bn of annual investments as the new normal. Domestic consumption, world-class digital public infrastructure, and innovation empowers India's digital prowess. India has already delivered $70Bn of exits to domestic and global VC investors - Manish Kheterpal, WaterBridge Ventures
2. Key Achievements and Growth
a. Surge in VC Funding
Deal Activity: The number of VC deals rose significantly to 536 in 2024, indicating increased investor confidence.
Investment Growth: Total investments jumped to ₹19,900 crore ($2.34 Bn), marking a 29.5% rise compared to 2023.
Investor Confidence: VC funding grew by 50.4% YoY in the first 3 quarters of 2024, reaching $8.3 Bn, primarily driven by large, growth-stage deals.
b. India’s Position Globally
India accounted for 7.1% of global VC deal volumes and 4.2% of disclosed funding values, showcasing its importance in the global startup ecosystem just next to US and China.
c. High-Value Deals or Transactions
Zepto raised $665 Mn in June-24 and an additional $340 Mn in Aug-24.
Other major deals included Meesho ($300 Mn), PharmEasy ($216 Mn), PhysicsWallah ($210 Mn), and Purplle ($178.4 Mn).
Large Deals Growth: The number of deals exceeding $100 Mn grew by 45%, demonstrating confidence in scaling startups.
d. Record Returns from IPOs
VCs earned over $4 Bn through IPOs and public market sales i.e. 2X the amount in 2023 and 2.5X that of 2022.
e. Geographic Dynamics
Top Hubs: Bengaluru, Delhi-NCR, and Mumbai led VC funding, collectively raising significant capital. Bengaluru topped the charts with $3.13 Bn, followed closely by Delhi-NCR ($3.01 Bn) and Mumbai ($2.7 Bn).
Emerging Cities: Locations like Chennai, Hyderabad, and Pune gained traction, driven by localized innovation.
3. Sector-Specific Growth
a. Space Sector
The Indian government’s approval of a ₹1,000 crore ($117 Mn) VC fund for space startups underlines the country’s ambition to become a global space-tech leader. This investment is expected to spur innovation and attract global attention.
b. Artificial Intelligence (AI)
India ranked 7th globally for AI startups, with 338 new ventures funded in 2024. In Q3-24, AI remained a major focus, with 6 of the 10 largest deals. However, there was a shift towards smaller deals and away from companies focused solely on large language models (LLMs).
c. FinTech
The fintech sector saw a 60% y-o-y rise in funding during Q3-24, raising over $677 Mn. Despite this, competition from traditional banks and increased regulatory scrutiny have introduced new challenges for fintech startups. The financial sector secured $2.20 Bn in VC investments, reflecting a marginal decline of 0.6% from Jan-Nov, 2023.
d. Consumer-focused Startups (B2C)
B2C startups led funding rounds in India, contrasting with global trends favoring B2B ventures. Zepto’s $360 Mn raise was one of the top 5 deals in Asia, highlighting the dominance of consumer-driven companies.
e. Defence Tech and Biotech
Defence Tech: Startups in this sector attracted interest for their niche, high-impact innovations.
Biotech: Indian biotech startups developed over 800 products and raised more than $600 Mn in follow-on funding.
g. Healthcare Sector
Investments in the healthcare sector fell by 14% in 2024 compared to 2023, reflecting a slowdown after the pandemic-driven surge in 2021-22.
Early-stage funding in India saw strong momentum in 2024, driven by domestic consumption, government initiatives, and digital public infrastructure. Quick commerce startups like Zepto, wealth tech startups, Tech-led NBFCs and regulated fintechs flourished. However, SaaS beyond Series A, HealthTech, and EdTech funding remained muted - Adith Podhar, Founding Partner, Gemba Capital.
4. Quarterly Breakdown
a. VC Deals
VC dealmaking in India in 2024 showed a number of deals peaked at 144 in Q2, with sustained activity throughout the year despite a gradual decline in the second half.
The year concluded with a total higher than the previous year's figures, reflecting strengthened investor confidence and increased opportunities in the market, even amidst signs of moderation in H2.
b. Quarterly Trajectory
VC investments in India in 2024 exhibited a fluctuating trajectory, with significant quarterly variations. Investments began at ₹4,791 crore in Q1 and peaked at ₹5,550 crore in Q2, marking a robust 15.8% growth.
The momentum waned in Q3, with investments declining sharply by 17.3% to ₹4,588 crore, reflecting market caution or external challenges. In Q4, investments rebounded to ₹4,971 crore, an 8.4% increase, signalling stabilisation toward the year-end.
Overall, the investment activity remained strong throughout 2024, with total figures surpassing 2023, underscoring sustained investor confidence in the Indian market.
c. Quarterly Trajectory of VC Exits in 2024
In 2024, Venture Capital exits in India, peaked at 24 exits in which rose significantly by 72.7% to 19 in Q2, signalling improved market conditions for exits. Q3 experienced a slight dip to 18 exits (5.3% from Q2), but the trend remained relatively stable.
The year closed with a 33.3% surge in Q4. However, despite strong Q2 and Q4 performance, overall VC exits declined by 12.2% year-on-year, from 82 in 2023 to 72 in 2024, suggesting a generally more cautious exit environment.
d. Quarterly Trajectory of VC Exits Harvest Value in 2024
In 2024, the harvest value, starting at ₹1,074 crore in Q1 and surging by 189.3% to ₹3,119 crore in Q2, signalled a strong market. This positive trajectory persisted in Q3, with the value climbing to ₹5,917 crore, an 89.7% increase from Q2, reflecting a favourable environment for exits.
Q4 saw an even more impressive rise, doubling from Q3 to ₹11,864 crore, highlighting a significant uptick in exit volumes driven by an optimistic economic outlook.
Despite a 24.2% year-on-year decline in total harvest values, dropping to ₹21,974 crore ($2.62 Bn) from ₹28,993 crore ($3.51 Bn) in 2023, the consistent growth in the second half of 2024 underscores the resilience of the exit market.
5. Challenges and Opportunities
a. Economic and Regulatory Hurdles
Valuation Pressures: Startups faced difficulty securing favorable valuations due to market volatility.
Economic Uncertainty: Geopolitical tensions, inflation, and fluctuating interest rates have made investors cautious.
Regulatory Scrutiny: Sectors like fintech and health tech experienced heightened oversight, creating additional hurdles.
Challenges remain: Founders must achieve product-market fit before Series A, FinTechs face tightening regulations, and ConsumerTech startups need to lower acquisition costs - Adith Podhar, Gemba Capital.
b. VC Exits Decline
Exits fell by 12.2% year-on-year, and harvest values dropped by 24.2%, reflecting cautious exit strategies amidst a challenging market.
c. Sectoral Funding Below Peak
Despite recovery, funding levels remained below the record highs of 2021-2022.
6. Prominent Exits of 2024
i. Swiggy
Exit Value: ₹6,825 crore ($808.74 Mn)
Exiting Investors: Accel India, Tiger Global, Sands Capital, Peak XV Partners, IFC, VEF
Method: IPO, Public market sale
ii. Honasa Consumer Ltd (Parent of Mamaearth)
Exit Value: ₹1,602 crore ($190.79 Mn)
Exiting Investors: Peak XV Partners, Sofina, Stellaris Venture Partners, Fireside Ventures
Method: IPO, Public market sale
iii. Indigo Paints Ltd
Exit Value: ₹1,557 crore ($185.47 Mn)
Exiting Investors: Peak XV Partners
Method: IPO, Public market sale
iv. Sedemac Mechatronics
Exit Value: ₹759 crore ($91 Mn)
Exiting Investors: Nexus Venture Partners, TR Capital
Buyer: A91 Partners, Xponentia Capital, IIFL AMC
7. Startup IPO Landscape and Future Pipeline
a. Strong IPO Activity
India’s IPO market remained robust, raising ₹35,729 crore in November 2024 alone. Notable listings included Swiggy, NTPC Green Energy, and Indigo Paints.
b. SEBI Regulation 6(2)
Simplified IPO access for startups with just two years of operational history, benefiting companies like Swiggy, Ola Electric, and Go Digit.
c. Future Pipeline
SEBI received 92 draft offer documents representing ₹111,000 crore ($13.2 Bn) in proposed IPOs, signaling sustained market activity.
7. Future Outlook
a. Investment Discipline Over Volume
VC firms are prioritizing quality over quantity, focusing on high-potential startups.
b. Growth-Stage Investments
While early-stage funding remains vital, growth-stage deals are taking center stage.
c. Sector-Specific Focus
AI, space tech, and defense tech are poised for strong growth, while fintech investments may slow due to increased competition and regulatory oversight.
d. Favorable Regulatory Environment
The abolition of angel tax and targeted VC funds in key sectors are expected to foster innovation and drive sustained growth in 2025.
2025 will see more startup IPOs and a number of GPs launching new funds. It will signal a renewal in funding despite the uncertainty of global decoupling - Siddarth Pai, 3one4 Capital.
2025 looks promising: Spacetech is growing well, new sectors like hardware, electronics, semiconductors are becoming interesting. As the sectors innovate, AI will accelerate disruption - Padmaja Ruparel, Indian Angel Network.
Conclusion
The Indian VC landscape in 2024 demonstrated resilience and adaptability, with significant growth in deal volumes and investments, despite challenges in exits and valuations. Regulatory reforms, such as the abolition of the angel tax and dedicated sectoral funds, have positioned India as a leading hub for startups and innovation. Looking ahead, a focus on disciplined investments, sector-specific opportunities, and a favorable regulatory environment will guide India’s VC ecosystem into a promising 2025.
Data Sources: Venture Intelligence, PIB, Global Data, YourStory, KPMG, BIRAC, Bloomberg, Uniqus, CNBC TV18, Outlook, Mint.
Download the full report here.
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