Indian tech startups have bounced back with renewed vigor, witnessing a 23% increase in funding in CY2024, according to a new report released by Nasscom in collaboration with Zinnov. Titled ‘Road to Recovery – Indian Tech Start-up Landscape 2024’, the report was launched on the sidelines of Startup Mahakumbh and paints a picture of cautious optimism amid strategic resilience in India’s startup ecosystem.
The report highlights that total tech startup funding rose to $7.4 billion in 2024, with a 27% year-on-year increase in the number of deals. The resurgence was further marked by a 2.1X increase in the number of newly founded tech startups, bringing the total to an estimated 32,000–35,000 startups in India.
While global investors remain cautious, the Indian ecosystem is seeing a shift in VC investment strategies that now emphasize sustainable growth and solid business fundamentals over aggressive capital deployment. Seed-stage startups recorded the highest growth at 29%, followed by early-stage (25%) and late-stage (21%) investments.
67% of tech startup funding in 2024 was directed toward “matured” sectors, such as Retail Tech and Health Tech, which outperformed their five-year averages. Meanwhile, nascent sectors like aviation, maritime and defense, and environment tech saw growing deal momentum, reflecting increasing investor appetite for emerging technologies.
India also added six new unicorns in 2024—the second-highest globally—bringing the total valuation of Indian unicorns to over $220 billion. Unicorns accounted for 33% of total funding, and tech IPOs recorded a three-fold increase over the previous year, making 2024 a record year for public market fundraising in India.
A standout highlight was the rapid rise of DeepTech startups. DeepTech funding grew by a massive 78%, reaching $1.6 billion, with the number of deals increasing by 24%. Median deal sizes in DeepTech outpaced traditional tech startups across all funding stages. Late-stage DeepTech startups experienced the most dramatic surge—2.7X growth in median deal size compared to 2023.
Notably, seed and early-stage DeepTech startups secured over 35% of the total DeepTech funding, up 9 percentage points from 2023. AI-led startups contributed 87% of all DeepTech funding, underlining India’s emergence as a key player in cutting-edge technologies.
Rajesh Nambiar, President of Nasscom, emphasized the strategic importance of this shift, stating,
“The growth across mature and emerging sectors, specifically in DeepTech and AI, outlines the Indian tech startup ecosystem’s growing maturity, evolving from being just a hub of opportunities to becoming a strategic force driving India’s digital economy. DeepTech startups play an increasingly crucial role in shaping India’s innovation landscape. Our focus now must be on strengthening the foundational pillars of this growth, from enhancing capital access to building robust innovation infrastructure, ensuring our startups can compete globally while solving uniquely Indian challenges.”
Pari Natarajan, CEO of Zinnov, added,
“The Indian entrepreneur’s story is one of hope, resilience, and an unshakable drive to change the world. At the heart of India’s growth, startups are fueling innovation and economic transformation. India’s tech startup ecosystem has entered a new phase of strategic resilience and scale, with a 2.1X surge in new startups, a record year for tech IPOs, and DeepTech funding soaring 78% to $1.6B—87% of which is AI-led. This surge in deep tech funding signals a new era—one where India is not just a consumer of cutting-edge technology but a creator, a leader, and an architect of innovation. The momentum we are witnessing today is an opportunity for the entire ecosystem—investors, academia, industry, and policymakers—to come together and accelerate India’s journey as a deep tech powerhouse.”
The report also finds that 88% of startup founders reported revenue growth in 2024, outperforming the 67% projection from 2023. The year’s central investment themes revolved around sustainable growth, innovation in business models, strategic partnerships, and a sharpened focus on DeepTech.
Looking ahead, nearly 75% of startups are optimistic about funding in 2025, and a significant 98% expect revenue growth, signaling strong momentum and confidence for the Indian tech ecosystem’s future.
