Venture Capital Growth in India

India's venture capital (VC) scene has experienced a remarkable upswing in 2024, with investments soaring to $16.77 billion across 888 deals. This represents a 14.1% increase in value and a 21.8% rise in deal volume compared to the previous year, as reported by the India Brand Equity Foundation (IBEF).

Sector-wise Investment Breakdown

The technology sector led the charge with a staggering $6.50 billion in investments, marking a 52.5% year-over-year growth. The consumer discretionary sector followed, securing $2.30 billion, up by 32.2%, while the financial sector saw a slight decrease to $2.20 billion. Notable deals included KiranaKart Technologies (Zepto) at $1.3 billion and Poolside AI SAS at $500 million.

Future Outlook and Emerging Opportunities

Industry experts are optimistic about the sustained growth into 2025, predicting an increase in initial public offerings (IPOs) and more activity in late-stage funding rounds. Emerging sectors like electric mobility and green hydrogen are opening new avenues, while traditional industries such as fintech and e-commerce continue to attract significant interest.

Comparative Analysis with China's VC Landscape

In contrast, China's VC funding landscape faced a downturn in 2024, with a 23.1% decline in deal volume and a 22.5% drop in funding value. Despite these challenges, China remains a pivotal player in the global VC market, second only to the US.