India’s tech startup ecosystem secured $7.6 billion in funding during the first nine months of 2024, marking a significant milestone with the addition of six new unicorns, a 500% increase compared to just one unicorn in 2023, according to a report by Tracxn, a SaaS-based market intelligence platform.
The report highlighted a surge in initial public offerings (IPOs) this year, with 29 tech companies going public in 2024 so far, compared to 15 during the same period in 2023. Despite global economic challenges, India's tech sector continues to demonstrate resilience, Tracxn said.
India’s economy has also shown strong performance, achieving an 8.2% GDP growth rate for FY24, surpassing earlier estimates and improving on the 7% growth recorded in the previous fiscal year.
“Despite the broader economic challenges, India’s tech ecosystem continues to demonstrate resilience,” said Neha Singh, co-founder of Tracxn.
The six new unicorns and the surge in IPOs reflect investor confidence in India's burgeoning tech 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,” Singh added.
The report noted that 12 funding rounds in 2024 exceeded $100 million, with online grocery platform Zepto raising $1 billion across two consecutive rounds, making it the only company to secure more than $500 million this year.
Late-stage funding rounds led the way, drawing $4.7 billion in 2024 compared to $4.9 billion in 2023 and $14.3 billion in 2022.
The retail, fintech, and food and agriculture tech sectors were the top performers, with retail tech attracting $1.95 billion in 2024, up 23% from 2023 but down 61% from 2022. Fintech secured $1.49 billion in funding.
Bengaluru, Mumbai, and Gurugram emerged as the top-funded cities, with Bengaluru accounting for over 35% of the total tech sector funding.
Looking ahead, 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 are expected to support continued growth.
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