Indian startups raised 32% fewer rounds in 2024 as VCs develop into selective

Indian startups raised 32% fewer funding rounds in 2024 in comparison with final 12 months, in response to new figures from information intelligence platform Tracxn, signaling that buyers are extra selective when placing offers .

The variety of startup funding rounds fell to 1,448 from 2,114 final 12 months, however total funding elevated 6% to $11.3 billion – the disparity right here signifies buyers aren’t holding again to take out their checkbook every time they need.

Seed-stage funding exercise mirrors the broader development, with the variety of Sequence A and Sequence B offers all the way down to 387 from 420 a 12 months earlier, though complete invested capital remained regular at 3 .16 billion {dollars}. Nonetheless, fewer startups managed to lift seed funding this 12 months, with offers falling to 925 from 1,545, whereas funding contracted 22% to $970 million.

Late-stage funding has underscored the market’s desire for bigger offers, with startups elevating 136 Sequence C and later rounds totaling $7.13 billion this 12 months, a 12% capital elevate regardless of a decrease quantity. Startups raised 20 rounds value greater than $100 million in 2024, in comparison with 18 such rounds in 2023.

Public markets have emerged as a brilliant spot, with greater than 40 startups finishing their IPOs, an 80% enhance from 2023. Swiggy’s $1.35 billion itemizing final month was the best of this 12 months. the world’s largest technology IPO.

A pipeline of more than 20 startupstogether with quick commerce group Zepto and business-to-business market Infra.Market, are getting ready to go public in 2025.

A variety of startup offers are additionally within the works, sources inform me: fast-commerce startup Swish is in talks to lift about $15 million; Premji Spend money on talks to help Digitap; Spotdraft seeks to lift a funding spherical; WhistleDrive is in talks to get about $11 million; Vodex.ai is in superior levels of discussions to safe round $10-15 million; and 91squarefeet, Galaxeye.house, R for Rabbit and Biryani by Kilo are in superior levels of deliberations to shut new cycles.