Venture capital (VC) activity in India has witnessed significant growth from January to November 2024, with investments reaching $16.77 billion across 888 deals, according to India Brand Equity Foundation (IBEF).
This marks a 14.1 per cent rise in value and a 21.8 per cent increase in deal volume compared to the same period in 2023.
The technology sector led the surge, securing $6.50 billion–a substantial 52.5 per cent year-over-year increase. Consumer discretionary investments followed at $2.30 billion, up 32.2 per cent, while the financial sector experienced a marginal dip to $2.20 billion. Major deals included KiranaKart Technologies (Zepto) at $1.3 billion and Poolside AI SAS at $500 million.
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Industry leaders are optimistic about sustained growth into 2025, forecasting more initial public offerings (IPOs) and heightened activity in late-stage funding rounds as cautious funds start deploying capital. Experts like Bhaskar Majumdar and Sajith Pai predict a positive shift in the Indian start-up ecosystem, anticipating significant easing in 2025.
While concerns linger over India’s economic dependence on the “India1” segment–around 30 million households contributing heavily to GDP–confidence remains bolstered by robust savings and capital inflows. Emerging sectors like 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 tech areas, including robotics, drones, and semiconductor technologies, are gaining traction.
The evolving global landscape, particularly the impact of the new US administration on international capital flows, is expected to present both challenges and opportunities for Indian start-ups in the coming year. China’s venture capital (VC) funding landscape saw a significant slowdown in 2024, with a total of 2,313 deals announced between January and November, accumulating a disclosed funding value of $32.3 billion, according to GlobalData report.
This marks a year-on-year (YoY) decline of 23.1 per cent in deal volume and a 22.5 per cent drop in funding value, as reported by GlobalData, a leading data and analytics company.
In comparison, the same period in 2023 recorded 3,006 VC deals, with total disclosed funding of $41.7 billion. The downturn reflects a challenging year for China’s VC ecosystem, influenced by regulatory crackdowns, macroeconomic uncertainties, and subdued market conditions.
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Aurojyoti Bose, Lead Analyst at GlobalData, stated, “VC funding activity in China has continued to remain subdued in 2024 as investor sentiments seem to have taken a hit on the back of a crackdown on companies, macroeconomic challenges, and uncertain market conditions. However, despite the decline, China remains a key player in the global VC market, second only to the US in deal volume and value.”
China accounted for 15.2 per cent of the total number of VC deals announced globally during January-November 2024, with a corresponding funding value share of 13.6 per cent.
Noteworthy deals in China during this period included $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 deals highlight the country’s ongoing significance in the global VC landscape, even amid economic challenges.