Optimism around startup funding has been fueled by the rise of ventures built on strong fundamentals rather than cash-burning models. However, the year wasn’t without its hiccups. Mid-year data revealed a dramatic dip in weekly funding, dropping from $200 million in mid-July to just $42 million by the end of the month—a figure among the lowest recorded since January 2023.
Continue Exploring: Limelight Diamonds Expands with New Chennai Store, Eyes Growth in Lab-Grown Diamond Market
But how does 2024 stack up overall?
According to Inc42’s Annual Funding Report 2024, Indian startups raised over $12 billion in fresh capital this year, a 20% increase compared to $10 billion in 2023. The total number of deals also rose by 11%, with 993 deals closed by December 21, 2024. This brings funding levels in line with 2020—the year the funding boom began—when startups raised $12 billion through 953 deals.
However, the numbers remain far from the record-breaking $42 billion raised across 1,584 deals in 2021 or even the $25 billion raised in 2022 through 1,517 deals. While private funding showed year-on-year growth, public market activity took center stage in 2024, with startup IPOs hitting a new high
Continue Exploring: Rare Rabbit Soars: Hits Rs 600 Crore Milestone in FY24
The IPO Surge
This year saw 13 new-age tech companies, including Swiggy, MobiKwik, and Awfis, raise capital through initial public offerings. Additionally, already-listed players like Zomato, Nazara, Zaggle, and Veefin tapped public markets for further funding.
The trend reflects a growing appetite for startup IPOs, with public listings emerging as a crucial funding avenue. This shift has helped startups diversify their funding sources beyond traditional private equity and venture capital.
