Venture capital (VC) activity in India experienced notable growth between January and November 2024, with total investments amounting to $16.77 billion across 888 deals, according to the India Brand Equity Foundation (IBEF). This activity marks a substantial 14.1% increase in investment value and a 21.8% rise in deal volume compared to the same period in 2023, as per IBEF data.
The technology sector led the way, securing $6.50 billion in investments—a remarkable 52.5% year-over-year growth. Consumer discretionary followed with $2.30 billion, reflecting a 32.2% increase, while the financial sector experienced a slight dip, recording $2.20 billion in investments, the IBEF report highlighted.
Prominent deals during this period included KiranaKart Technologies (Zepto) securing $1.3 billion and Poolside AI SAS raising $500 million. Industry experts remain optimistic about sustained growth heading into 2025, anticipating a rise in initial public offerings (IPOs) and heightened activity in later-stage funding rounds as previously cautious funds start deploying capital.
Experts such as Bhaskar Majumdar and Sajith Pai predict a favorable shift in the Indian startup ecosystem, expecting a “significant easing” in 2025. While concerns linger over the economy’s dependence on the India1 segment—roughly 30 million households that drive a substantial portion of the GDP—confidence remains strong, fueled by steady capital inflows supported by household savings.
Emerging sectors like electric mobility and green hydrogen present fresh opportunities, while established industries such as fintech and e-commerce continue to draw considerable investment.
There is also an increasing emphasis on intellectual property (IP)-driven businesses, particularly in deep tech sectors, with notable investments in robotics, drones, and semiconductor technologies.
According to the IBEF report, the new US administration is expected to shape global capital flows, influence the evolving ecosystem, and present challenges and opportunities for Indian startups.
