Venture capital (VC) activity in India has witnessed significant growth from January to November 2024, with investments reaching $16.77 billion across 888 deals, according to the India Brand Equity Foundation (IBEF).
As a venture capital activity in India, from January to November 2024, the figures have climbed up to US$ 16.77 billion in 888 deals, indicating a sharp increase of 14.1 percent in value and 21.8 percent in the count of deals as compared to the corresponding period in 2023, based on data that the India Brand Equity Foundation, or IBEF, has collected.
Technology sector emerged as the leader, with $6.50 billion, showing a spectacular year-over-year increase of 52.5 percent. Consumer discretionary investments were at $2.30 billion, which grew by 32.2 percent, while the financial sector dropped slightly to $2.20 billion, said the IBEF report.
Of these notable deals are KiranaKart Technologies (Zepto) that sold for $1.3 billion and Poolside AI SAS for $500 million. Industry players believe that momentum will be sustained into 2025 with further IPOs as well as an uptick in late-stage rounds when funds have built up capital reserves and begun to open their checkbooks.
Experts such as Bhaskar Majumdar and Sajith Pai expect a positive turn for the Indian startup ecosystem; they predict "great easing" in 2025. Despite the economy's heavy dependence on the India1 engine, which is composed of approximately 30 million households that significantly contribute to the GDP, optimism prevails due to the ongoing capital inflows backed by savings.
The energy transition opens doors for new opportunities in both electric mobility and green hydrogen. Meanwhile, traditional areas continue to attract investment in fintech and e-commerce.
But also, there is this trend of intellectual property-led businesses where deep tech is significant-in terms of investments in robotics, drones, and semiconductor technologies.
As the landscape continues to change, the US market influence under the new administration will shape global capital flows and pose challenges and opportunities for Indian startups, according to the IBEF report.
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