Indian Startups In 2024: 16 Charts That Sum Up The Past Year

As we step into 2025, the Indian startups stand at a fascinating crossroads, particularly after the past year of turbulence and triumph. In 2024, we saw Indian startups reach new maturity, particularly when it comes to public listings and turnaround of unicorns from losses to profitability.

If anything, 2024 was a year of reckoning and resilience of Indian startups, where ambition collided with reality, and innovation charted its unpredictable course. 

In our “2024 in Review” series, we’ve navigated through the highs and lows — from industry-shaking controversies to the quiet revolution of startups that rose against the odds, from the spotlight on market movers to the IPOs that sparked conversations.

But even as we usher in 2025, there’s something captivating about pausing, just for a moment, to savor the richness of the year gone by. What better way to distill the essence of 2024 than through charts and visuals that add more volume to our words. 

The following 16 charts are more than just numbers; they are the story of a year that challenged, transformed, and redefined the contours of India’s tech and startup world. Together, they provide reflection of 2024’s narrative, setting the stage for what promises to be another exhilarating year of change.

Startup Funds Worth $8.7 Bn Launched In 2024

In 2024, the Indian startup ecosystem witnessed a significant surge in new fund launches, with over $8.7 Bn raised through 81 new funds, including venture capital (VC), private equity (PE), micro, angel, and government funds. 

This marks a 55.36% increase from 2023, when $5.6 Bn was raised across 64 funds. 

Early-stage startups were particularly favored, with 40 funds totaling $1.94 Bn launched for them. The fintech sector stood out, accounting for 15.6% of the total funds, followed by consumer-focused and deeptech funds. 

Additionally, large funds, such as Kedaara Capital’s $1.7 Bn PE fund and the government’s INR 750 Cr AgriSURE Fund, were launched to support agritech startups. 

Indian Startups M&As Hit Record Low

In 2024, the Indian startup ecosystem recorded only 71 mergers and acquisitions (M&As), marking a 10-year low and a 40% decline compared to 2023. The ecommerce sector, previously a leader in M&As, saw deals plummet from 25 in 2023 to just six in 2024. Contributing factors included expensive valuations, limited capital availability, and a shift in focus toward profitability over expansion.

While sectors like enterprise tech maintained some activity, the overall slowdown was attributed to economic conditions, regulatory scrutiny, and valuation challenges. Major players like The Good Glamm Group and Mensa Brands refrained from acquisitions, while capital scarcity further hampered ecommerce activity, which saw a 42% drop in funding year-on-year.

Despite the slump, listed companies like Zomato and Nazara Technologies remained active in acquisitions, targeting profitable and complementary businesses. Experts predict M&A activity may rebound in 2025, fueled by new public listings and strategic acquisitions by established companies seeking growth.

Indian Startups See Funding Rebound In 2024

In 2024, Indian startup funding saw a significant recovery, stabilizing at levels similar to those in 2020. Indian startups raised over $12 Bn, marking a 20% increase from the previous year. 

This return to 2020 levels followed a period of decline after the exuberant funding years of 2021 and 2022. The number of deals also rose, with 993 deals reported, 11% more than in 2023.

Despite the growth, funding figures remain far below the peaks of 2021, when $42 Bn were raised across 1,584 deals. However, the uptick in 2024 reflects a shift towards more sustainable, fundamentally strong ventures. 

The seed and growth stages saw notable increases, particularly with early-stage funding rising by 31%. Key sectors like fintech, enterprise tech, and consumer services continued to attract investment, with fintech securing the highest share.

New-Age Tech Companies Raise INR 29,000 Cr+ Via IPOs

In 2024, the Indian startup ecosystem saw a record 12 new-age tech companies go public, raising a total of INR 29,070.57 Cr through IPOs. 

This was a significant jump from just five IPOs in 2023. Major startups like Go Digit General Insurance, Swiggy, FirstCry, and Ola Electric made their stock market debuts, with 11 of the 12 companies listing at a premium over their issue prices. 

The IPOs were largely driven by investor interest in technology companies, with a mix of offers for sale (OFS) and fresh issue of shares. The success of these IPOs has also sparked a wave of upcoming listings, with 34 more startups, including Ather Energy and boAt, already in the pipeline.

VC Funding Shifts To Smaller Ticket Sizes

While overall VC funding has rebounded in 2024, there’s been a noticeable reduction in ticket sizes, reflecting a market correction and a shift in investor priorities. 

For example, climate tech or cleantech saw the largest year-on-year (YoY) growth in ticket size, increasing by 32.13%, from $8.4 Mn in 2023 to $11.05 Mn in 2024. Healthtech also experienced a significant rise of 28.03%, signaling strong investor confidence in these sectors. Fintech followed closely with a 21.5% increase, while deeptech and enterprise tech saw more modest growths of 10.42% and 7.2%, respectively.

On the other hand, some sectors witnessed considerable declines in average ticket size. Logistics faced the steepest drop of 62.32%, falling from $11.9 Mn in 2023 to just $4.5 Mn in 2024. 

The media and entertainment sector also saw a significant decrease of 39.5%, while agritech and ecommerce had more moderate reductions of 19.61% and 10.29%, respectively. These declines reflect a broader trend of investors focusing more on sectors with sustainable growth and clear profitability, opting for smaller but more diversified investments in startups.

Despite the overall shrinkage, some sectors like edtech saw an increase in ticket size, though deal volume decreased. 

UPI Hits New Milestone: 150 Bn+ Transactions 

In 2024, the Unified Payments Interface (UPI) continued to be a dominant force in India’s digital economy, with remarkable growth in both transaction volume and value. By November 2024, UPI had processed over 155 Bn transactions, totaling approximately INR 223 Lakh Cr, doubling from last year’s reported data. 

The UPI ecosystem however, remains largely concentrated, with PhonePe, Google Pay, and Paytm together driving 96% of the transaction volume. 

Beyond India, UPI has been expanding globally, now available in seven countries, including the UAE, Singapore, and Mauritius. This international push is a part of India’s broader ambition to promote its digital payment system across the world.

While UPI remains cost-free for most users, any move to introduce fees on transactions has sparked concerns about user retention.

India’s Defence Exports Hit New Highs

In FY24, India’s defence exports reached a record high of INR 21,083 Cr, registering a growth of 32.5% over the previous year.

This growth can be attributed to several key factors, including the Indian government’s push for self-reliance in defence manufacturing, strategic initiatives to boost defence exports, and increased involvement of both private companies and defence public sector undertakings (DPSUs) in meeting international demand. 

The rising demand for Indian-made defence equipment has also been a major factor, spurring the nascent defence tech startup ecosystem. As India’s defence industry has matured, startups and defence manufacturers in aerospace and drones have turned suppliers for countries in Africa, Southeast Asia, and the Middle East. 

The diversity of India’s offerings—ranging from small arms to sophisticated aerospace and naval systems—has expanded the country’s market reach. This, combined with the growing reputation for delivering reliable and cost-effective products, has contributed to the surge in exports.

4G Connectivity Now In 6.14 Lakh Villages

India’s mobile connectivity has expanded significantly, with over 6.14 Lakh villages now covered by 4G services as of September 2024. This expansion has transformed rural areas, providing access to government schemes, healthcare, and education through mobile connectivity. 

The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) initiative has focused on Particularly Vulnerable Tribal Groups (PVTGs), identifying over 4,500 habitations previously without mobile coverage. 

As of October 2024, 1,136 of these have gained mobile connectivity, ensuring marginalised communities are included in the digital landscape.

Telecom companies are also making significant investments to upgrade network infrastructure. Bharti Airtel, for instance, has secured a multi-billion-dollar deal with Ericsson to expand 4G and 5G services, while Vodafone Idea has signed a $3.6 Bn agreement with Nokia, Ericsson, and Samsung as part of a broader $6.6 Bn capital expenditure plan. 

Both Airtel and Reliance Jio are rolling out 5G services, with Nokia in talks to supply advanced 5G technology. 

Moreover, satellite internet is set to become a reality in India soon, with Reliance Jio bagging approval to launch services. 

Electric Vehicle Wave Slows Down

The growth of electric vehicle (EV) registrations in India has been impressive over the past few years, with a notable surge in the number of vehicles on the road. 

After over 3X growth in 2022, the growth rate slowed to 49.50% in 2023, with 15,32,397 EVs registered. The slowdown continued in 2024, with an increase of 30.55%, reaching a total of 20,00,514 registered EVs.

The deceleration in growth in 2024 can be attributed to several factors. For instance, the EV sector continued to grapple with supply chain issues, particularly in battery production, affecting vehicle availability. Additionally, the lack of widespread charging infrastructure and range anxiety deterred potential buyers, hindering adoption rates. 

The fire incidents in some brands, along with the associated safety fears, negatively impacted consumer confidence in EVs, which already faced challenges like limited charging infrastructure and higher upfront costs. 

Credit Card Issuance Crosses 100 Mn+ Mark

Between 2018 and 2024, total number of credit card users in India increased from 44 Mn to 107 Mn, reflecting a compound annual growth rate (CAGR) of about 17%. This growth was driven by factors such as the rise of ecommerce, the adoption of contactless payments, and evolving consumer preferences, as well as a concerted marketing push by banks in partnership with fintech and consumer services startups.

Despite hitting the milestone of 100 Mn credit cards, in 2024, India witnessed a notable slowdown in new credit card issuances. In October 2024, banks issued 780,000 new credit cards, a 45% decline from the 1.6 Mn issued in October 2023. This deceleration can be attributed to increased delinquency rates, prompting banks to tighten their credit policies. 

The RBI also implemented stricter lending regulations, including higher capital requirements for personal loans and credit cards. These measures have contributed to a slowdown in the growth of unsecured loans.

Despite these headwinds, the total number of credit cards in circulation reached 107 Mn by November 2024.

UPI Drives The Rise Of Digital Payments

India’s digital payment ecosystem has witnessed an extraordinary transformation from FY19 to FY24. In FY19, the total value of digital transactions was INR 31 Bn, which has surged to a remarkable INR 163 Bn in FY24. 

A significant portion of this growth is attributed to the meteoric rise of UPI, which grew from 535.19 Cr transactions in FY19 to 11,150.13 Cr in FY24, making up 70% of all digital transactions. 

This growth is driven by the increasing convenience and reliability of UPI, which has become the preferred mode for both retail and large-scale payments across the country. Additionally, modes such as NACH (National Automated Clearing House) and NETC (National Electronic Toll Collection) have also seen substantial growth, driven by the adoption of recurring payment systems and the increasing use of digital toll collection.

In contrast, several traditional payment methods have seen a decline in usage. Debit card transactions, for example, dropped from 441.78 Cr in FY19 to 159.04 Cr in FY24, as consumers shifted to UPI for more seamless, direct bank-to-bank transfers. 

India’s Digital Public Infra In Numbers

India Stack can be called a set of digital tools transforming India into a digital-first economy, backed by government initiatives across key sectors like fintech, education, healthcare, and banking. 

With over 1.41 Bn Aadhaar holders, $7.7 Tn in UPI transactions, and 434.9 Mn DigiLocker users, these innovations have enhanced access to essential services for millions. 

Notably, India’s approach to digital public infrastructure (DPI) is not just driving local growth but is also serving as a model for other developing economies. 

Initiatives like UPI have been recognised globally for their transformative impact, while the rise of tools like DigiLocker, digital health IDs, and ONDC reflects the government’s commitment to enabling innovation across multiple sectors. 

Surge In Funding For Women-Led Indian Startups In 2024

2024 was a landmark year for women-led startups in India, with funding increasing significantly. Women-led ventures raised over $523 Mn across 75 deals in the first half of 2024, marking an 81% year-on-year rise. 

By the end of the year, they had secured more than $930 Mn across 136 deals, a 93.75% increase from the previous year. Fintech led the funding with $267 Mn (28.7% of total funding), followed by ecommerce at $212 Mn (22.8%) and enterprise tech at $130 Mn (14%). 

Interestingly, although fintech attracted substantial funding, it saw fewer deals, with just 17 transactions. Ecommerce led in deal volume, with 53 deals, followed by healthtech with 13. 

Inc42’s annual funding report also suggests that ecommerce attracted a larger number of small investments compared to other sectors.

Indian Startups Create Over 15.5 Lakh Direct Jobs

Indian startups have played a pivotal role in driving employment in the country, with over 15.5 Lakh direct jobs created over recent years. 

The startup ecosystem has seen remarkable growth, with increasing numbers of new businesses emerging across various sectors such as technology, ecommerce, healthcare, and more.

As the number of startups continues to rise, the impact on employment has been significant. Startups not only generate job opportunities but also contribute to skill development and innovation. 

The biggest challenge in this regard is addressing the concerns from the gig worker ecosystem, especially as services banking on gig workers continue to scale new heights. 

Indian Startups Cut Over 9,000 Jobs In 2024

On the flipside, Indian startups laid off over 9,000 employees in 2024. However, this was a notable reduction compared to the previous year’s 17,000+. 

These job cuts were part of ongoing efforts by startups to survive after the harsh funding winter that began in 2022, with many companies focusing on cost-cutting and achieving profitability over rapid expansion. 

While some sectors, such as edtech, fintech, and healthtech, saw more layoffs, there was a silver lining as startup funding in 2024 increased by 15%, helping stabilise the market.

Key companies leading the layoffs included Paytm, which let go of over 5,000 employees, and other significant players like Ola Electric, BYJU’s, and Swiggy. The restructuring initiatives were often driven by a shift in priorities towards profitability, automation, and streamlining operations. 

ESOP Buybacks Nearly Doubled In 2024

However, startups that had already undergone downsizing in 2022 and 2023 turned to wealth creation this year, after raising funds through public markets or private investors. 

A 2023 survey showed that 55% of founders were relying on ESOPs to attract talent back to the startup ecosystem, and this strategy proved successful in 2024. 

Companies like Swiggy, Meesho, Urban Company, and Capillary Technologies led significant ESOP buyback programs, generating wealth for thousands of employees.

Having said that, the total value of ESOP buybacks in 2024 fell by 73%, from $850 Mn in 2023 to $170.7 Mn. 

This decline was largely due to Flipkart’s contribution of $700 Mn in the previous year. Excluding Flipkart, however, Indian startups performed well, with 23 companies participating in buyback programmes, nearly double the number from 2023.