Delhi NCR Slips To Third Spot In Startup Funding With $2.3 Bn In 2024

Amid many changes in the Indian startup ecosystem, the top three startup hubs of the country in terms of funding – Bengaluru, Delhi NCR, and Mumbai – have remained unchanged for years. The story was the same in 2024 as well.

However, the top three positions saw some rejig in 2024. The country’s financial capital, Mumbai, overtook Bengaluru to take the top spot in terms of startup funding. As a result, Delhi NCR dropped to the third position.

According to Inc42’s Indian Startup Funding Report 2024 the funding raised by Delhi NCR-based startups declined 15% to $2.3 Bn in 2024 from $2.7 Bn in 2023.

However, the deal count increased slightly to 252 during the year from 241 in 2023. Consequently, Delhi NCR retained its second position in the list of top startup hubs of the country in terms of deal count.

What Led To The Decline In Funding?

Delhi NCR saw a fall in funding despite the total funding raised by Indian startups growing over 20% year-on-year (YoY) to $12 Bn in 2024. This begs the question, what led to the decline in Delhi NCR funding?

According to Rohit Krishna, a partner at WEH Ventures, there are more D2C brands in Delhi NCR than in other hubs, and these brands require less capital than other tech startups.

Another reason for the drop was that late-stage funding in Delhi NCR declined 40% to $967 Mn, despite a 79% increase in deal count to 34 deals.

“Many late-stage startups are now trying to operate with existing capital, as they are facing down rounds. To maintain their valuation and avoid lower valuations, many are refraining from seeking additional funding rounds,” Krishna added.

BlueGreen Ventures founding partner Anup Jain believes that late-stage funding in Delhi NCR has shifted towards public markets rather than private equity, driven by IPOs. He highlighted that a number of startups from Delhi NCR, like TBO Tek, Unicommerce, MobiKwik, and ixigo, went public last year.

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Median Ticket Size Jumps

On account of the surge in deal count, the median ticket size in Delhi NCR rose 15% to $2.3 Mn in 2024 from $2 Mn in 2023. The region was at the second position among the top startup hubs in terms of median ticket size, behind Mumbai. The financial capital also saw a 15% YoY increase in median ticket size to $3.4 Mn in 2024.

The increase in median ticket size in Delhi NCR was because of high activity in growth-stage funding. Delhi NCR startups recorded a 31% YoY rise in growth-stage funding to over $1 Bn in 2024. The deal count also rose 60% to 80 last year.

This increase was more than that seen in the overall startup ecosystem. Growth-stage funding in the Indian startup ecosystem zoomed 21% YoY to $3.5 Bn in 2024, while deal count grew 47% to 282.

Overall, two big funding rounds – one late stage and one growth stage – materialised in Delhi NCR in 2024. While hospitality major OYO raised $175 Mn in a round led by Ritesh Agarwal-floated Patient Capital, PhysicsWallah raised $210 Mn in its Series B funding round, led by Hornbill Capital. The edtech startup’s funding round was the third biggest growth-stage round in 2024.

Meanwhile, seed stage startups in Delhi NCR raised over $155 Mn in 2024, an increase of 37% YoY. However, deal count at the seed stage declined 17% to 101 in 2024.

Ecommerce, Fintech Lead Delhi NCR Ecosystem

Ecommerce has remained the top sector in Delhi NCR over the last decade, followed by fintech, enterprise tech, consumer services, and edtech.

Ecommerce startups bagged 668 deals between 2014-2024, followed by fintech and enterprise tech startups with 404 and 370 deals, respectively. In addition, consumer services and edtech startups secured 264 and 228 deals, respectively, during this period.

In terms of funding, ecommerce claimed the top position at $10 Bn between 2014 and 2024. It was closely followed by fintech startups with $9.9 Bn funding during the same period. Travel tech came in a distant third with $5.2 Bn in funding.

What’s In Store For 2025?

The year 2025 is expected to bring mixed tidings for startups based out of Delhi NCR, with a few sectors likely to be in focus.

As per Krishna, the ecommerce sector, particularly D2C brands, will continue to attract investors.

On the other hand, Jain believes that a number of climate tech and mobility startups call Delhi NCR their home, and these startups will secure funding this year. He cited the example of Battery Smart, which raised $65 Mn in its Series B round in 2024.

Besides, quite a few new-age tech companies from the region, including PhysicsWallah, OfBusiness, boAt, and OYO, are expected to list on the bourses this year. This is likely to translate to heightened investor interest in pre-IPO startups.

“With successful exits from Delhi-NCR-based startup IPOs last year, investor sentiment remains positive,” Jain said. “There’s a growing bullishness around pre-IPO companies and Series A startups expected to go public in the next 3-4 years. Family offices are also actively scouting for deals in pre-IPO rounds,” he added.

[Edited By Vinaykumar Rai]

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