9 Indian Tech Startup Funding Predictions For 2024

9 Indian Tech Startup Funding Predictions For 2024

SUMMARY

Inc42 predicts an overall YoY increase of approximately 36% in Indian startup funding for 2024

However, Inc42's data analysis suggests a potential 5% reduction in funding if global issues persist

Overall, the year 2024 is poised to mark the commencement of a new disruptive cycle

At Inc42, the last two months have either been about delving deeper into the year gone by or trying to take a peek into the trends that will shape the current year.As per Inc42 analysis, overall YoY increase of approximately 36% in Indian startup funding for 2024. This forecast is based on the average annual growth rate of funding amounts from 2014 to 2023, encompassing the ups and downs of the Indian startup ecosystem over the past nine years.“What we anticipate emerging as a new theme from India is the materials space where innovations will create solutions across health, sustainability, and EVs, among other domains,” Raguraman said.However, startups at Series A and Series B stages that successfully navigated these challenges showed strong growth.“We have witnessed the emergence of viable IPO templates in India, and in 2024, more Indian startups will approach IPOs, raising substantial pre-IPO rounds and turning around the late stage funding. The IPO pipeline already boasts 14-15 companies, and I wouldn’t be surprised if this number doubles,” founding partner at 3one4 Capital Pranav Pai said.According to Apoorva Sharma, managing partner at Stride Ventures, the average ticket size has significantly reduced from INR 45-50 Cr in 2021 to around INR 20 Cr. This adjustment reflects a strategic emphasis on supporting robust business models and steering clear of sectors entangled in regulatory challenges.“The last two years witnessed significant market volatilities due to wars impacting global economies, and 2024 will see major countries entering election mode. This implies that startups need to build robust risk mitigation strategies,” Padmaja Ruparel, cofounder of Indian Angel Network said.

During this time, we also spent time speaking with several industry experts, who see the funding winter further seeping into 2024. Despite this, they see the current year faring better than the last, and there is a reason for it.Shashank Randev, founder VC and cofounder at 100X.VC, mentioned, “Every fund is now looking for the next batch of startups to support. This renewed interest will bring back confidence in the ecosystem. We’ve decided to invest $6.5 Mn in the next six months.”

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