India’s venture capital market rebounds in 2024, funding surges to $13.7B: Report
In contrast to a largely stagnant Asia-Pacific VC market, India saw a notable rise in deal activity, reinforcing its position as the second-largest VC destination in the region.
India’s venture capital (VC) market experienced a sharp resurgence in 2024, with total funding reaching $13.7 billion, marking a 1.4x increase from 2023, according to the India Venture Capital Report 2025 by Bain & Company in collaboration with IVCA.
The strong rebound was driven by robust domestic economic fundamentals, regulatory reforms, and increased public market activity. In contrast to a largely stagnant Asia-Pacific VC market, India saw a notable rise in deal activity, reinforcing its position as the second-largest VC destination in the region.
Increase in deal volumes and investment trends
The number of VC deals increased from 880 in 2023 to 1,270 in 2024, reflecting a 45% growth. Small- and medium-ticket deals (under $50 million) comprised approximately 95% of total investments, expanding 1.4x year-over-year, as per report.
Larger deals above $50 million nearly doubled, reaching pre-pandemic levels, as investor confidence strengthened. While the number of megadeals (over $100 million) increased, their average size fell by 20%, reflecting a shift towards more conservative valuations.
Despite this, five new unicorns emerged in 2024, compared to just two in 2023. Notable investments included Zepto, Meesho, and Lenskart.
Tech-first sectors, including consumer technology, SaaS, and fintech, dominated the funding landscape, collectively securing more than 60% of total VC investments. Consumer technology emerged as the largest sector, receiving $5.4 billion—a 2.3x increase from 2023.
The report noted that investments in B2C commerce, travel tech, gaming, and edtech fueled this surge, with quick commerce standing out due to high consumer adoption and proven profitability. Software and SaaS, including generative AI, attracted $1.7 billion, reflecting a 1.2x rise. Funding in genAI alone grew 1.5x, with capital flowing into applications and platform-based solutions rather than foundational models.
Traditional sectors gain momentum
Beyond technology, traditional industries also attracted strong investor interest. Banking, Financial Services, and Insurance (BFSI) saw funding jump 3.5x to $1.1 billion, driven by investments in non-banking financial companies (NBFCs) and green financing initiatives, reports highlighted.
Consumer and retail investments doubled to $0.9 billion, focusing on premium food and beverage brands such as Bira and Parsons, along with fashion brands like BlueStone.
Private equity (PE) funds and non-traditional investors played a growing role in India’s VC landscape in 2024. PE firms continued backing high-growth companies, exemplified by KKR’s investment in Rebel Foods. Family offices and corporate VC firms significantly increased participation, with deal volumes rising 1.8x from 2023.
Nearly 50% of $100 million+ deals were led or co-led by non-traditional investors such as StepStone, GladeBrook, and MEMG. Traditional VC firms like Accel, Elevation, and Lightspeed remained active, though crossover funds were more restrained. SoftBank, after an 18-month hiatus, resumed investing but focused primarily on existing portfolio companies.
Despite the resurgence in deal activity, overall VC fundraising declined by 35% to $2.7 billion, the lowest level since 2020. The slowdown was attributed to accumulated dry powder and cautious capital deployment. However, maiden funds gained prominence, accounting for one-third of total VC and growth capital raised, up from 25% in 2023. Many of these funds focused on emerging themes such as sustainability, agriculture, defense, sports, and gaming.
Exit activity remained steady at $6.8 billion in 2024, with a notable shift toward public market exits, which accounted for 76% of total exit value, up from 55% in 2023, it said. This was driven by a sevenfold increase in IPO exits, supported by rising market liquidity, higher valuations of key tech stocks, and regulatory reforms easing the listing process.
Several regulatory changes in 2024 created a more favorable investment environment, including the removal of the angel tax, reduction in long-term capital gains (LTCG) tax rates, streamlining of the National Company Law Tribunal (NCLT) process, and simplification of foreign venture capital investor (FVCI) registrations. These reforms strengthened investor confidence and positioned India as an increasingly attractive destination for global capital.
Edited by Jyoti Narayan
