Venture capital activity in India hits $16.77 billion in 2024, marking 14.1% growth – Newz9

NEW DELHI: Venture capital (VC) activity in India has witnessed important growth from January to November 2024, with investments reaching $16.77 billion throughout 888 offers, based on India Brand Equity Foundation (IBEF).
This marks a 14.1 per cent rise in worth and a 21.8 per cent enhance in deal quantity in comparison with the identical interval in 2023.
The know-how sector led the surge, securing $6.50 billion–a substantial 52.5 per cent yr-over-yr enhance. Consumer discretionary investments adopted at $2.30 billion, up 32.2 per cent, whereas the monetary sector skilled a marginal dip to $2.20 billion. Major offers included KiranaKart Technologies (Zepto) at $1.3 billion and Poolside AI SAS at $500 million.
Industry leaders are optimistic about sustained growth into 2025, forecasting extra preliminary public choices (IPOs) and heightened activity in late-stage funding rounds as cautious funds begin deploying capital.
Experts like Bhaskar Majumdar and Sajith Pai predict a constructive shift in the Indian startup ecosystem, anticipating important easing in 2025.
While considerations linger over India’s financial dependence on the “India1” segment–around 30 million households contributing closely to GDP–confidence stays bolstered by sturdy financial savings and capital inflows.
Emerging sectors like electrical mobility and inexperienced hydrogen provide new alternatives, whereas conventional industries comparable to fintech and e-commerce proceed to draw curiosity.
Additionally, mental property (IP)-driven ventures in deep tech areas, together with robotics, drones, and semiconductor applied sciences, are gaining traction.
The evolving international panorama, significantly the influence of the brand new US administration on worldwide capital flows, is anticipated to current each challenges and alternatives for Indian startups in the approaching yr.
China’s enterprise capital (VC) funding panorama noticed a major slowdown in 2024, with a complete of two,313 offers introduced between January and November, accumulating a disclosed funding worth of $32.3 billion, based on GlobalData report.
This marks a yr-on-yr (YoY) decline of 23.1 per cent in deal quantity and a 22.5 per cent drop in funding worth, as reported by GlobalData, a number one information and analytics firm.
In comparability, the identical interval in 2023 recorded 3,006 VC offers, with whole disclosed funding of $41.7 billion. The downturn displays a difficult yr for China’s VC ecosystem, influenced by regulatory crackdowns, macroeconomic uncertainties, and subdued market circumstances.
Aurojyoti Bose, Lead Analyst at GlobalData, said, “VC funding activity in China has continued to remain subdued in 2024 as investor sentiments seem to have taken a hit on the back of a crackdown on companies, macroeconomic challenges, and uncertain market conditions. However. “, regardless of the decline, China stays a key participant in the worldwide VC market, second solely to the US in deal quantity and worth.”
China accounted for 15.2 per cent of the entire variety of VC offers introduced globally throughout January-November 2024, with a corresponding funding worth share of 13.6 per cent.
Notable offers in China throughout this era included $1.5 billion raised by Changxin Technology, $1.4 billion secured by AVATR, $1.1 billion raised by IM Motors, and $1 billion acquired by Moonshot AI.
These substantial offers spotlight the nation’s ongoing significance in the worldwide VC panorama, even amid financial challenges.