India’s startups witnessed some signs of recovery in 2024 after prolonged funding crunch, stemming from rising interest rates, uncertain global economic conditions, and geopolitical tensions which made investors risk averse. Private Equity investors and Venture Capitalists gradually showed optimism and splurged capital in selected companies this year, led by quick commerce, ecommerce sectors and health-tech sectors.
Kaivalya Vohra and Aadit Palicha-led Zepto remained the funding leader in 2024, raising more than $1 billion in three rounds by institutional investors such as avra, Glade Brook Capital, General Catalyst, Epiq Capital Advisors, according to the data by Tracxn shared with Storyboard18.
The quick commerce firm raised $350 million in a Series G funding round last month. In August 2024, the Bengaluru-based startup raised $340 million and $665 million in Series F round in June this year, taking up the valuation to $5 billion.
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E-commerce major Meesho became favourites of PE and VC investors this year. The Vidit Aatrey company $275 million in Series F round from Tiger Global Management and Peak XV Partners in May.
Heathtech also retained its position as a leading sector in PE and VC funding in 2024.
Apollo 24|7 stood as the second-most funded startup in 2024 raising $297 million in April this year by US-based PE firm Advent International in April. Another health-tech startup, API Holdings, parent company of PharmEasy, raised $216 million in Series F round from led by Ranjan Pai’s Manipal Group and Temasek in April this year. The other investor included Caisee de depot et placement du Quebec, Goldman Sachs, EvolutionX and WSSS Investments.
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Ed-tech startup Physics Wallah, was the sixth-most funded startup of 2024, raising $210 million in Series B round, taking the company’s valuation to $2.8 billion. Another ed-tech firm, Eruditus, was among the top-13 most funded startups that secured more than $100 million of funding in 2024. Eruditus raised $150 million, led by TPG’s The Rise Fund and SoftBank Vision Fund in October.
Ride hailing platform Rapido secured $200 million in Series E round of funding led by West bridge Capital and Nexus Venture Partners in September 2023, taking valuation to $1.1 billion.
Manish Taneja’s Purplle also emerged as one of the lucrative companies for the investors in 2024. The omnichannel beauty and personal care platform received a VC funding of $178 million in Series F round, led by Premji Invest and Blume Ventures in October. The company’s current valuation stands at $1.3 billion.
Followed by Purplle, hospitality startup Oyo was the ninth most funded startup by PEs and VCs in the current calendar year. The Ritesh Agarwal-led Oyo closed $175 million funding, led by Patience Capital Group and J&A Partners Business in August.
SaaS-based digital adoption platform for customer self-service, Whatfix raised $125 million in a Series F round while audio series platform Pocket FM raised $103 million, and Mintifi, an online marketplace for business loans, raised $100 million from PE and VC investors in 2024.
There are other successful newbie businesses that raised more than $100 million in funding but via other routes. For instance, eyewear retailer Lenskart raised $200 million in secondary investment from Temasek and Fidelity Management and Research Company in June this year. Logistics startup Ecom Express raised $172 million from existing investors through the right issue, and HealthKart announced that it raised $153 million in a secondary funding round led by investors ChrysCapital and Motilal Oswal Alternates.
According to Bloomberg data, the VC recorded a total value of $16.77 billion in Indian startups between January and November 2024 a 14.1 percent increase in value compared to 2023.