Indian startups raised $6.3 billion through 672 venture capital (VC) deals between January and July, marking a year-on-year increase of nearly 43 percent in funding, according to a data and analytics firm.
The growth comes despite a cautious global investment climate that saw a mere 1.2 percent growth in deal volume and reflects investor confidence in India’s potential, according to GlobalData.
India recorded 664 venture capital deals with a disclosed funding value of $4.4 billion between January and July 2023, according to an analysis of GlobalData’s deal database.
“While venture capitalists remain cautious, there is no shortage of money for promising startups,” said Aurojyoti Bose, principal analyst at GlobalData.
Notable venture capital deals this year include fast-grossing firm Zepto, which raised $665 million in funding, e-commerce startup Meesho, which raised $300 million, and online pharmacy PharmEasy, which raised $216 million.
The increase in funding value despite a 1.2 percent growth in transaction volume can be attributed to large-value transactions, Bose said.
India accounted for 7 percent of total announced venture capital deals globally between January and July 2024; the country’s share in the corresponding disclosed funding value was 4.3 percent.
“India, besides being a key market in Asia Pacific for venture capital funding activity, right after China, is also one of the top five markets globally in terms of volume and value of venture capital funding deals,” Bose said.
India remains a “pivotal market” for venture capital activity, driven by a strong pipeline of promising startups that continue to attract significant capital despite global economic uncertainties. The trend reinforces India’s position as a pivotal player in the global venture capital ecosystem, demonstrating resilience and growth even amid cautious investor sentiment, Bose added.
First published: August 28, 2024 | 1:18 PM IS
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