GG News Bureau
Mumbai, 29th Dec. India’s venture capital (VC) landscape has experienced robust growth in 2024, with investments reaching $16.77 billion across 888 deals from January to November, according to the India Brand Equity Foundation (IBEF). This marks a 14.1% increase in funding value and a 21.8% rise in deal volume compared to the same period in 2023.
The technology sector led the charge, attracting a significant $6.50 billion—an impressive 52.5% year-over-year (YoY) growth. The consumer-related sector followed closely with $2.30 billion, up 32.2%, while the financial sector saw a slight decline to $2.20 billion. Notable deals in the technology sector included KiranaKart Technologies (Zepto), which raised $1.3 billion, and Poolside AI SAS, securing $500 million in funding.
Industry leaders are optimistic about the continued growth trajectory into 2025. With expectations of more initial public offerings (IPOs) and an increase in late-stage funding, cautious investors are expected to start deploying capital. Bhaskar Majumdar and Sajith Pai, prominent figures in India’s startup ecosystem, predict a positive shift in conditions as the market recovers.
While concerns over India’s economic reliance on the “India1” segment—30 million households contributing significantly to GDP—remain, investor confidence continues to thrive due to strong savings and capital inflows. Emerging sectors such as electric mobility and green hydrogen are generating new investment opportunities, while traditional sectors like fintech and e-commerce remain attractive to investors.
Additionally, intellectual property (IP)-driven ventures in deep-tech industries like robotics, drones, and semiconductors are gaining traction, indicating the growing diversification in India’s VC market. Industry experts expect challenges and opportunities arising from the evolving global landscape, particularly with the impact of the new US administration on international capital flows.
In contrast, China’s VC market has seen a significant slowdown in 2024, with total funding of $32.3 billion from 2,313 deals. This represents a year-on-year (YoY) decline of 23.1% in deal volume and a 22.5% drop in funding value. Despite these challenges, China remains a key player in the global VC market, accounting for 15.2% of the global deal volume and 13.6% of the funding value during the same period.
China saw several notable deals, including $1.5 billion raised by Changxin Technology, $1.4 billion by AVATR, $1.1 billion by IM Motors, and $1 billion by Moonshot AI, underscoring the country’s continued significance in the global VC ecosystem.
Looking ahead, India’s venture capital market remains a bright spot, with promising sectors poised to lead the way in 2025, even as global dynamics shape the startup landscape.
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