OUTLOOK FOR 2025: FOR THE STARTUP AND VC ECOYSTEM AND IMPACT OF AI

The domestic startup ecosystem is expected to rebound with fresh approaches in key sectors like content, media, fintech, and market-places.

- RAJUL GARG

The venture capital ecosystem saw important developments in India and globally, ultimately impacting India as well. Three major events need to be highlighted:

1 We are ending the COVID bull and bear run: The COVID bull run of investing started in 2021 and peaked in 2022. The venture markets froze in late 2022/2023, and now this period of thaw is coming to an end in 2024.

With interest rates beginning to decline and elections in both India and the US concluding, this should mark a new period of organic growth in venture investments.

2 India’s IPO markets continued to be bullish: The Indian IPO market remained strong, resulting in an abundance of domestic capital.

Zomato reached new heights, instilling confidence in the ability of Indian consumer companies to deliver profits.

The IPO pipeline is robust, with both large and small companies participating. Funds have been successful in raising domestic capital, although individual investors from 2021 have largely stayed away.

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