11 April 2024 — In Q1 2024, VC investments in Indian startups surged past $2 billion from 183 deals, doubling the previous quarter’s investments.
Recent talks of Meesho’s funding with Softbank and Tiger Global have reignited interest in Indian startup funding. After a period of decline, larger venture capital and private equity funds are returning to India, indicating a revival in the startup funding landscape.
While the funding amount is slightly lower compared to previous years, analysts note an increase in the quality of financiers and ticket sizes, signifying a more discerning investment approach. Several significant deals in the March quarter include Kore.ai’s $150 million raise, Pocket FM’s $103 million funding, and Bira’s $50 million investment.
Indian family offices are actively participating in funding rounds, with Premji Invest eyeing a substantial investment in Canva and leading a funding round for Hippocratic AI.
Late-stage investments are on the rise, emphasizing startups with established traction and profitability. VCs are conducting more rigorous due diligence, leading to longer deal gestation periods.
Conclusion:
The surge in VC investments and the return of major funds signal a positive shift in India’s startup ecosystem. With a focus on quality investments and thorough due diligence, the sector is poised for continued growth and stability.
