India's start-up investment by VCs surges to $13.7B in 2024
11 Mar 2025

India's venture capital (VC) market saw a resurgence, with investments in start-ups hitting $13.7 billion in 2024, the India VC Report 2025 by Bain & Company and the Indian Venture and Alternate Capital Association (IVCA) found.

This represents a 1.4x growth over 2023, making the country the second-largest VC destination in the Asia-Pacific region.

The report credits the growth to regulatory reforms, favorable macroeconomic conditions, and an increase in public market exits.

Investor confidence returns amid favorable market conditions
Market dynamics

The report notes a 45% increase in deal volume, with 1,270 deals in 2024 against 880 in 2023.

While smaller deals (under $50 million) made up 95% of the transactions, large-ticket deals ($50 million and above) nearly doubled, signaling a renewed interest in high-growth businesses.

"The VC landscape looks promising in 2025, with a resurgence in activity and a healthier, low-risk investment environment," said Lightspeed India Partners.

Consumer tech and AI drive growth
Sector performance

Consumer technology has emerged as the largest sector, with funding skyrocketing 2.3x to $5.4 billion.

Meanwhile, B2C commerce, quick commerce, gaming, edtech, and travel tech witnessed a fourfold surge in $100 million+ deals (16 last year, up from just four in 2023).

Zepto was among the standout performers, securing $1.4 billion in funding.

Software and SaaS investments rose by 1.2x to $1.7 billion, driven by big global demand for automation, AI-driven solutions, and enterprise technology.

Traditional sectors gain traction, IPOs dominate exit landscape
Market trends

Traditional sectors like banking, financial services, insurance (BFSI), and consumer/retail also witnessed remarkable growth.

BFSI investments surged 3.5x to $1.1 billion, led by non-banking financial companies (NBFCs) focused on affordable housing finance and MSME lending, while consumer/retail funding increased by 2.2x to $0.9 billion.

Investor liquidity improved significantly in 2024, with exit values rising to $6.8 billion.

Public market exits accounted for around 76% of total exits, marking a shift toward IPOs as the preferred exit route.

Fundraising dips but capital remains available
Investment landscape

Despite jump in deal-making, fundraising activity declined 35% to $2.7 billion, lowest since 2020, due to cautious deployment strategies and fewer large fundraises.

However, corporate VCs and family offices stepped up, increasing deal volumes by 1.8x, while private equity (PE) funds continued to expand their role, accounting for over 20% of VC/growth deals.

Key policy changes, like abolition of angel tax, boosted early-stage investments, while reduction in long-term capital gains (LTCG) tax rates boosted investor returns.