Bengaluru, Sep 24 (IANS): India’s tech startup ecosystem secured $7.6 billion funding in the nine months this year, along with witnessing six new unicorns, a massive 500 per cent increase compared to just one unicorn in 2023, a report showed on Tuesday.
The initial public offering (IPO) numbers have surged, with 29 tech companies going public in 2024 (year to date), compared to 15 during the same period in 2023, according to the report by Tracxn, a SaaS-based market intelligence platform.
According to the report, India's economy has shown resilience in 2024, achieving an 8.2 per cent GDP growth rate for FY24, surpassing earlier estimates and the 7 per cent growth of the previous fiscal year.
“Despite the broader economic challenges, India’s tech ecosystem continues to demonstrate resilience,” said Neha Singh, Co-founder Tracxn.
The emergence of six new unicorns and a surge in IPOs with 29 tech companies going public in 2024 (YTD) reflects investor confidence in the sector.
“While overall funding has slowed, late-stage investments and the increasing momentum in fintech and retail show that innovation-driven growth is still thriving in India’s startup landscape,” she mentioned.
The India tech ecosystem saw 12 funding rounds exceeding $100 million in 2024 YTD, with Zepto raising $1 billion across two consecutive rounds, making it the only company to secure over $500 million this year.
The majority of funding came from late-stage rounds, which garnered $4.7 billion, compared to $4.9 billion in 2023 and $14.3 billion in 2022.
Retail, fintech and food and agriculture tech have emerged as the top-performing sectors. The retail sector, in particular, attracted $1.95 billion in 2024 YTD, reflecting a 23 per cent increase from 2023 but a 61 per cent drop from 2022.
Fintech emerged as the second highest funded sector, securing $1.49 billion, the report mentioned.
Bengaluru, Mumbai and Gurugram emerged as the top-funded cities, with Bengaluru alone accounting for over 35 per cent of the total funding in the tech sector.
India is projected to become the world's third-largest economy by 2027 with a GDP exceeding $5 trillion, the country’s large consumer base, young population, and rising urban incomes position it for continued growth.