Venture capital (VC) activity in India witnessed significant growth from January to November 2024, with investments reaching $16.77 billion in 888 deals, according to India Brand Equity Foundation (IBEF). did.
This represents a 14.1% increase in value and a 21.8% increase in transaction volume compared to the same period in 2023.
The technology sector led the surge, securing $6.5 billion, an increase of 52.5% year-on-year. This was followed by consumer discretionary investment, which increased by 32.2% to $2.3 billion, while the financial sector saw a slight decline to $2.2 billion. Key deals included KiranaKart Technologies (Zepto) for $1.3 billion and Poolside AI SAS for $500 million.
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Industry leaders are optimistic about sustained growth through 2025, anticipating an increase in initial public offerings (IPOs) and increased activity in late-stage funding rounds as cautious funds begin to deploy capital. There is. Experts like Bhaskar Majumdar and Sajith Pai predict positive changes in India’s startup ecosystem and expect significant easing in 2025.
Although concerns remain about India’s economic dependence on the ‘India 1’ segment (approximately 30 million households that contribute significantly to GDP), confidence remains strong due to strong savings and capital inflows. Emerging sectors such as electric mobility and green hydrogen offer new opportunities, while traditional industries such as fintech and e-commerce continue to attract interest. Additionally, intellectual property (IP)-driven ventures in deep technology areas such as robotics, drones, and semiconductor technology are gaining momentum.
The evolving global landscape, particularly the impact of the new US administration on international capital flows, is expected to pose both challenges and opportunities for Indian startups in the coming year. According to a report by GlobalData, China’s venture capital (VC) funding situation will slow down significantly in 2024, with a total of 2,313 deals announced from January to November, and a total of 2,313 announced funding amounts. The cumulative total was $32.3 billion.
This represents a 23.1% year-over-year (YoY) decline in deal volumes and a 22.5% decline in funding volumes, according to a report from GlobalData, a leading data and analytics company.
In comparison, during the same period in 2023, 3,006 VC deals were recorded and the total amount of funds disclosed was $41.7 billion. The economic downturn reflects a tough year for China’s VC ecosystem, affected by regulatory crackdowns, macroeconomic uncertainty, and weak market conditions.
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Aurojyoti Bose, principal analyst at GlobalData, said: “Investor sentiment appears to have taken a hit on the back of corporate repression, macroeconomic challenges and uncertain market conditions, with venture capital funding activity in China expected to decline in 2024. “It continues to be sluggish in 2020,” he said. Despite its decline, China remains a major player in the global VC market, ranking second only to the US in deal volume and deal value. ”
Of the total number of VC deals announced globally from January to November 2024, China accounted for 15.2%, and the corresponding funding amount share was 13.6%.
Notable deals in China during this period include $1.5 billion raised by Changxin Technology, $1.4 billion secured by AVATR, $1.1 billion raised by IM Motors, and $1 billion acquired by Moonshot AI . These substantial transactions highlight the country’s continued importance in the global venture capital landscape, even amidst economic difficulties.
