From January to November 2024, venture capital (VC) activity in India increased significantly, with investments totalling $16.77 billion over 888 deals, according to the India Brand Equity Foundation (IBEF).
According to figures gathered by the India Brand Equity Foundation (IBEF), venture capital activity in India increased to US$ 16.77 billion across 888 deals from January to November 2024, representing a robust 14.1 percent increase in value and a 21.8 percent increase in deal count over the same period in 2023.
The IT sector emerged as the frontrunner, collecting $6.50 billion, representing a spectacular 52.5% rise year on year. Consumer discretionary investments followed with $2.30 billion, up 32.2%, while the financial sector fell slightly to $2.20 billion, according to the IBEF report.
Notable acquisitions were KiranaKart Technologies (Zepto) for $1.3 billion and Poolside AI SAS for $500 million. Industry experts are optimistic about ongoing momentum into 2025, with more initial public offerings (IPOs) and increasing activity in later-stage investment rounds as previously conservative funders begin to deploy resources.
Experts such as Bhaskar Majumdar and Sajith Pai predict a good transition in the Indian startup ecosystem, with a “great easing” in 2025. Despite concerns about the economy’s reliance on the India1 engine, which includes over 30 million households that contribute considerably to GDP, optimism remains strong due to continuous capital flows fuelled by savings.
The energy transformation opens up new prospects in the electric mobility and green hydrogen sectors. At the same time, conventional industries such as fintech and e-commerce continue to draw investment.
Furthermore, there is a rising emphasis on intellectual property (IP)-driven enterprises, particularly in deep technology, with large investments in robots, drones, and semiconductor technologies.
As the landscape changes, the incoming administration’s influence on the US market may alter global capital flows, posing both problems and opportunities for Indian startups, according to the IBEF report.
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