Indian start-ups secured $1.1 billion in VC funding in October
Venture capital (VC) funding for Indian start-ups continued its steady flow of over $1 billion for the sixth consecutive month in October, even as it saw an 11% annual decline from last year's $1.245 billion. The total amount raised in October 2024 stood at about $1.106 billion, marking a 20% decline from September's numbers, according to YourStory data.
2024 surpasses previous year's total VC funding
Despite the monthly decline, 2024's overall VC funding has already exceeded last year's total. The cumulative funding for the first 10 months of this year stood at $11.7 billion, exceeding the $10.8 billion recorded for all of 2023. However, October saw a slowdown in both the amount raised and deal volume with 103 deals as opposed to September's 117 deals.
High-value deals drive VC funding in Indian start-ups
High-value deals were the biggest contributors to VC funding in the Indian start-up ecosystem. Eruditus, Samunnati, and Finova Capital bagged funds between $100 million and above. Meanwhile, upGrad and Purplle raised funds in the $50 million-$100 million bracket. In October alone, early-stage start-ups received $244 million from 80 deals while late-stage companies raised $354 million from just four deals.
Debt capital and sector-wise distribution of VC funding
October also witnessed start-ups getting the second-highest debt capital, a sign that the industry is moving toward debt funding as equity continues to be difficult for many. Sector-wise, fintech topped the charts in fund-raising followed by edtech and e-commerce. The fintech sector has always been at the forefront of VC funding owing to the opportunity it presents to expand the business.
Mumbai leads in VC funding, Delhi-NCR lags behind
Mumbai topped the list of VC funding destinations in October with $336 million, followed by Bengaluru and Chennai. Surprisingly, Delhi-NCR, which usually ranks in the top three cities for start-up funding, managed to raise only $93 million in October. Despite the ups and downs, experts believe that 2024 will witness at least a 15% increase in funding compared to 2023.
