Key Points
- India’s VC investments hit $16.77 billion in 2024, a 14.1% increase from 2023.
- The technology sector led the growth, securing $6.50 billion, up 52.5% year-over-year.
- Consumer discretionary investments grew by 32.2%, reaching $2.30 billion.
- Financial sector investments slightly declined to $2.20 billion.
- Notable deals included KiranaKart Technologies ($1.3 billion) and Poolside AI SAS ($500 million).
- Experts forecast further growth in 2025 with more IPOs and late-stage funding rounds.
- Emerging sectors like electric mobility and green hydrogen are gaining attention.
- China’s VC funding dropped by 23.1%, with a total of $32.3 billion invested in 2024.
- Despite challenges, China remains a key player in the global VC market.
Looma News
Venture capital (VC) activity in India grew significantly from January to November 2024. Total investments reached $16.77 billion across 888 deals, showing a 14.1% rise in value and a 21.8% increase in deal volume compared to the same period in 2023, according to the India Brand Equity Foundation (IBEF). The technology sector led the way, securing $6.50 billion, a 52.5% jump from the previous year. Consumer discretionary investments also saw growth, reaching $2.30 billion, up 32.2%. However, the financial sector saw a small dip, bringing in $2.20 billion.
Some notable deals included KiranaKart Technologies (Zepto), which raised $1.3 billion, and Poolside AI SAS, which secured $500 million. Experts are optimistic about continued growth into 2025, with more IPOs and activity in late-stage funding rounds. Industry leaders like Bhaskar Majumdar and Sajith Pai believe the Indian start-up scene will keep growing, with things gradually improving next year.
Despite concerns about India’s economic dependence on the “India1” segment—about 30 million households that contribute heavily to the country’s GDP—confidence remains high thanks to strong savings and capital inflows. New sectors like electric mobility and green hydrogen are creating fresh opportunities, while sectors like fintech and e-commerce continue to draw attention. Intellectual property-driven ventures in fields like robotics, drones, and semiconductors are also gaining traction.
Global trends are also affecting India’s VC future. Experts point out that the new US administration could impact global capital flows, bringing both challenges and opportunities. Meanwhile, in China, VC funding took a hit in 2024, with investments dropping by 23.1%, totaling $32.3 billion. This decline was linked to regulatory crackdowns, macroeconomic challenges, and weak market conditions. Despite this, China still plays a key role in the global VC market, contributing to 15.2% of global deal volume and 13.6% of funding value in 2024.
In China, major deals included $1.5 billion raised by Changxin Technology, $1.4 billion secured by AVATR, and $1.1 billion raised by IM Motors. These deals highlight China’s continued importance in the global venture capital space, despite its current economic difficulties.
