Startup funding picks up after 3-year slump

Sees 10% funding rise in 2024 so far

- ARYAMAN GUPTA

After over three years of funding slump, the country's startup ecosystem is showing signs of recovery.

Startup funding in 2024 has increased by 10 per cent year-on-year (Y-o-Y), touching $9.78 billion, compared to $8.88 billion during the same period last year, according to market research firm Tracxn.

Investors attribute the revival to the strong markets, which are inspiring confidence in initial public offering-bound startups offering viable exit opportunities.

"The funding winter is coming to an end," said Anirudh A Damani, managing partner, Artha Venture Fund - a micro-venture capital fund. "This resurgence is partly fuelled by high valuations in the public markets, which have led some smart investors to pivot from public equities towards private investments," he added.

Several Indian startups went public this year, including workspace provider Awfis, baby products brand FirstCry, electric vehicle (EV) maker Ola Electric, and, most recently, food delivery major Swiggy.