Indian tech startup funding jumps 23% to $7.4 billion in 2024: Nasscom-Zinnov study

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The Indian tech startup ecosystem witnessed a comeback in 2024, with a 23 percent surge in funding to $7.4 billion, according to the latest Nasscom-Zinnov report.

The report, titled Road to Recovery – Indian Tech Start-up Landscape 2024, highlights a revival in investor sentiment, a rise in deal activity, and an expansion in new startup formations.

Apart from robust funding, number of deals increased by 27 percent compared to 2023, while the number of newly founded tech startups more than doubled, bringing the total size to an estimated 32,000–35,000 startups.

Nonetheless, investors have a cautious but strategic approach, focusing on sustainable business models and strong fundamentals rather than aggressive capital deployment.

Seed-stage startups saw the highest funding growth at 29 percent, followed by early-stage startups at 25 percent and late-stage companies at 21 percent. The funding concentration remained high in ‘mature’ sectors, with 67 percent of total funding directed toward areas like retail tech and health tech, which outperformed their five-year averages.

Meanwhile, sectors such as aviation, maritime and defense, and environment tech also gained, indicating growing investor interest in emerging domains.

India retained its position as the second-highest unicorn creator globally in 2024, adding six new unicorns and taking the total unicorn valuation beyond $220 billion. These high-growth startups accounted for 33 percent of total funding.

Investor confidence in public market fundraising also surged, with tech IPOs tripling compared to 2023, making it a record-breaking year for Indian tech startup listings.

DeepTech startups witnessed significant momentum, with funding in the sector rising by 78 percent to reach $1.6 billion. The number of deals in DeepTech increased by 24 percent, with median deal sizes outpacing traditional tech startups across all funding stages.

AI-led startups dominated the segment, contributing 87 percent of total DeepTech funding. Late-stage DeepTech firms saw a 2.7X increase in median deal sizes compared to 2023.

Optimism for 2025

According to Nasscom’s industry survey, 88 percent of tech startup founders reported revenue growth in 2024, far exceeding the 67 percent anticipated in the previous year’s outlook. The funding sentiment remains positive, with nearly 75 percent of Indian tech startups expecting improved funding conditions in 2025, while 98 percent anticipate revenue growth.

Nasscom President Rajesh Nambiar said the need for strengthening foundational growth pillars, including access to capital and innovation infrastructure, to ensure Indian startups can compete globally.

Zinnov CEO Pari Natarajan believes the surge in DeepTech funding marks a shift in India's role from a technology consumer to a creator and leader in global innovation.