New Delhi, Dec 29 Venture capital (VC) activity in India has witnessed significant growth from January to November 2024, with investments reaching $16.77 billion across 888 deals, according to the India Brand Equity Foundation (IBEF).
Venture capital activity in India from January to November 2024 has surged to US$ 16.77 billion across 888 deals, reflecting a robust 14.1 per cent increase in value and a 21.8 per cent rise in deal count compared to the same period in 2023, according to figures gathered by the India Brand Equity Foundation (IBEF).
The technology sector emerged as the frontrunner, attracting $6.50 billion, a remarkable 52.5 per cent increase year-over-year. Consumer discretionary investments followed with $2.30 billion, up 32.2 per cent, while the financial sector saw a slight decline to $2.20 billion, the IBEF report said.
Noteworthy deals included KiranaKart Technologies (Zepto) at $1.3 billion and Poolside AI SAS at $500 million. Industry leaders express optimism about continued momentum into 2025, with expectations for more initial public offerings (IPOs) and increased activity in later-stage funding rounds as funds that have been cautious begin to deploy capital.
Experts like Bhaskar Majumdar and Sajith Pai foresee a positive shift in the Indian startup ecosystem, anticipating "great easing" in 2025. Despite concerns about the economy's reliance on the India1 engine, which comprises around 30 million households contributing significantly to GDP, optimism remains high due to ongoing capital flows supported by savings.
The energy transition presents new opportunities in electric mobility and green hydrogen sectors. At the same time, traditional areas like fintech and e-commerce continue to attract investment.
Additionally, there is a growing focus on intellectual property (IP) -led businesses, particularly deep tech, with significant investments in robotics, drones, and semiconductor technologies.
As the landscape evolves, the influence of the US market under the new administration could shape global capital flows, presenting both challenges and opportunities for Indian startups, the IBEF report added.
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