NEW DELHI: Venture capital (VC) activity in India has seen a significant increase from January to November 2024, with investments in 888 deals reaching $16.77 billion, according to the India Brand Equity Foundation (IBEF).
This indicates a 14.1% increase in value and a 21.8% increase in deal volume compared to the same period in 2023.
The technology sector led the increase, taking in $6.50 billion — a whopping 52.5 percent year-over-year increase. Consumer discretionary investment rose 32.2 percent to $2.30 billion, while the financial sector experienced a slight decline to $2.20 billion. Major deals include KiranaKart Technologies (Zepto) for $1.3 billion and Poolside AI SAS for $500 million.
Industry leaders are optimistic about sustained growth in 2025, predicting more initial public offerings (IPOs) and increased activity in late-stage funding rounds as prudent funds begin deploying capital. .
Experts like Bhaskar Majumdar and Sujit Pai have predicted a positive shift in the Indian startup ecosystem, expecting a significant slowdown in 2025.
While concerns remain over India’s economic dependence on the “India 1” segment — about 30 million households contributing heavily to GDP — strong savings and capital inflows bolster confidence.
Emerging sectors such as electric mobility and green hydrogen offer new opportunities, while traditional industries such as fintech and e-commerce continue to attract interest.
Additionally, intellectual property (IP) driven deep tech areas including robotics, drones and semiconductor technologies are gaining traction.
The evolving global landscape, particularly the impact of the new US administration on international capital flows, is expected to present both challenges and opportunities for Indian startups in the coming year.
China’s venture capital (VC) funding landscape saw a significant decline in 2024, with a total of 2,313 deals announced between January and November, raising $32.3 billion in funding, according to a Global Data report. .
This marks a 23.1 percent year-on-year (YoY) decline in deal volume and a 22.5 percent decline in funding value, as reported by GlobalData, a leading data and analytics company.
In comparison, 3,006 VC deals were recorded in the same period in 2023, representing a total of $41.7 billion in funding. The downturn reflects a challenging year for China’s VC ecosystem, plagued by regulatory crackdowns, macroeconomic uncertainty, and depressed market conditions.
“VC funding activity in China remains muted in 2024 as it looks like the crackdown on companies, macroeconomic challenges and uncertain market conditions will lead to capital inflows,” said Orojyoti Bose, lead analyst at Global Data. Car sentiment has been affected. Despite the decline, China remains a major player in the global VC market, second only to the US in terms of deal volume and value.”
China accounted for 15.2 percent of the total number of VC deals announced globally during January-November 2024, with a financial value of 13.6 percent.
Notable deals in China during this period included $1.5 billion raised by Changxin Technology, $1.4 billion raised by AVATR, $1.1 billion raised by IM Motors, and $1.1 billion raised by Moonshot AI. $1 billion was involved.
These landmark deals underscore the country’s continued importance in the global VC landscape despite economic challenges.