Funding for Indian technology startups increased 23% in calendar year 2024 compared to 2023, growing to $7.4 billion. Of this, deeptech startups raised $1.6 billion registering a 78% year-on-year growth, as per a new report by Nasscom and consulting firm Zinnov.
India saw a doubling in new tech startups founded in 2024 compared to the year before, at over 2,000.
Boosting India’s tech startup ecosystem requires addressing structural gaps such as a better understanding of deeptech startup valuation models, stronger government-industry-academia collaboration, increased global patent filing, and higher R&D investments, said Rajesh Nambiar, president, Nasscom, on Thursday.
“India's vision of Viksit Bharat 2047 will be shaped not just by the economic growth, but also by the depth and the impact of our technological innovation, by how boldly we will embrace and lead the deeptech revolution,” Nambiar said.
He added that technological sovereignty is becoming a national imperative and that India must achieve a future where we are creators of transformative technology and not just users.
He was speaking at the Startup Mahakumbh in the national capital, where the report was launched.
As many as 44% of the new startups came from emerging hubs outside tier-1 cities, which is 4% higher than in 2023, the tech startup landscape report said, adding that this is creating a “truly national innovation ecosystem”.
About 29% of the 450 new deeptech startups founded in 2024 were also from the emerging hubs. Investment in tech startups leveraging artificial intelligence (AI) accounted for 87% of deeptech investments in 2024, the report said.
“2022 and 2023 -- these were years where we saw a lot of indicators like investment and startup creation coming down. 2024 is a rebound year for us,” said Achyuta Ghosh, senior director and head -- insights, Nasscom.
The number of deals went up from 824 to 1,045 over this period. The revival is broad-based, the report said. Seed funding grew highest at 29% while early and late-stage investments rose 25% and 21%, respectively.
Talent shortages and regulatory complexities however remain challenges, the report said.
“There’s a lot of regulatory support that the government has given, but it is still a maze,” said Ghosh. “There's a lot of regulations that are there that don’t talk to each other -- is there a way that could be simplified?”
Overall, there are about 32,000-35,000 technology startups in India today—a 12x increase from the 3,000 such startups in 2014—with a total funding of $64 billion, the report said. There are over 4,000 deep-tech startups with $10 billion in funding.
“As we look ahead, 2025 will be a defining year – one where the focus shifts towards deeptech commercialisation, AI-driven efficiencies, and scaling beyond tier-1 hubs,” the report said.
The past year also saw 12 tech startup IPOs indicating that “public market confidence returned”, it said.
M&A activity however declined in 2024 compared to 2023, primarily due to a 65% decline in participation by Indian startups, it said, adding that M&A by global firms remained at 2023 levels.
India saw a doubling in new tech startups founded in 2024 compared to the year before, at over 2,000.
Boosting India’s tech startup ecosystem requires addressing structural gaps such as a better understanding of deeptech startup valuation models, stronger government-industry-academia collaboration, increased global patent filing, and higher R&D investments, said Rajesh Nambiar, president, Nasscom, on Thursday.
“India's vision of Viksit Bharat 2047 will be shaped not just by the economic growth, but also by the depth and the impact of our technological innovation, by how boldly we will embrace and lead the deeptech revolution,” Nambiar said.
He added that technological sovereignty is becoming a national imperative and that India must achieve a future where we are creators of transformative technology and not just users.
He was speaking at the Startup Mahakumbh in the national capital, where the report was launched.
As many as 44% of the new startups came from emerging hubs outside tier-1 cities, which is 4% higher than in 2023, the tech startup landscape report said, adding that this is creating a “truly national innovation ecosystem”.
About 29% of the 450 new deeptech startups founded in 2024 were also from the emerging hubs. Investment in tech startups leveraging artificial intelligence (AI) accounted for 87% of deeptech investments in 2024, the report said.
“2022 and 2023 -- these were years where we saw a lot of indicators like investment and startup creation coming down. 2024 is a rebound year for us,” said Achyuta Ghosh, senior director and head -- insights, Nasscom.
The number of deals went up from 824 to 1,045 over this period. The revival is broad-based, the report said. Seed funding grew highest at 29% while early and late-stage investments rose 25% and 21%, respectively.
Talent shortages and regulatory complexities however remain challenges, the report said.
“There’s a lot of regulatory support that the government has given, but it is still a maze,” said Ghosh. “There's a lot of regulations that are there that don’t talk to each other -- is there a way that could be simplified?”
Overall, there are about 32,000-35,000 technology startups in India today—a 12x increase from the 3,000 such startups in 2014—with a total funding of $64 billion, the report said. There are over 4,000 deep-tech startups with $10 billion in funding.
“As we look ahead, 2025 will be a defining year – one where the focus shifts towards deeptech commercialisation, AI-driven efficiencies, and scaling beyond tier-1 hubs,” the report said.
The past year also saw 12 tech startup IPOs indicating that “public market confidence returned”, it said.
M&A activity however declined in 2024 compared to 2023, primarily due to a 65% decline in participation by Indian startups, it said, adding that M&A by global firms remained at 2023 levels.
You may also like
Donald Trump says tariffs going 'better than expected' as trillions wiped off global economy
Global megastardom to living the quiet life - what happened to the cast of Top Gun?
Did Donald Trump ban AP photographer Evan Tucci who took his iconic 'Fight. Fight. Fight' image from White House?
Vijaya Diagnostic shares slip further amid broader market correction
Dani Dyer shares go-to affordable 'tummy control' pants that are 'very flattering and comfortable'
