New Avenues, New Hopes In Start-Up Funding

India’s start-ups are recovering from post-2021 funding shock. Will the trend continue?

- MANOJ SHARMA

INDIA’S start-up ecosystem is showing signs of recovery with first half of the year (H1 2024) seeing a slight increase in funding. Companies are upbeat and stepping up hiring; and layoffs have declined 55%. Since H1 2022, countries grappled with funding winter for four consecutive half-year periods, but 2024 shows promise. Tech start-ups raised $5.1 billion in H1 2024, a 7% increase from $4.46 billion in H2 2023, turning around two years of successive decline in funding every six months.

In H1 2024, India’s tech start-up space was among the top four globally in fund-raising after China ($6.2 billion), U.K. ($6.8 billion) and U.S. ($55.7 billion). It fared better than major economies Israel, Germany, France and Canada, according to data from Tracxn Technologies, a market intelligence firm. “The start-up funding landscape reflects a blend of resilience and strategic caution,” says Neha Singh, co-founder and CEO, Tracxn. It is remarkable that venture capitalists are showing confidence in the Indian market despite global uncertainties, she adds.