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Indian startups attract $4 Bn in funding during September quarter

EntrackrEntrackr · 9m ago
Indian startups attract $4 Bn in funding during September quarter
Medial

Indian startups have shown impressive resilience in the third quarter of 2024, raising over $4 billion. This funding amount is nearly on par with the previous quarter and exceeds the total from the first quarter of the year. The landscape featured several significant deals, including multiple transactions over $300 million and $200 million, along with pre-IPO rounds and secondary market activity. This robust support, especially from early-stage startups, highlights a strong recovery and continued investor confidence, making it one of the most successful quarters during the ongoing funding winter. According to data compiled by TheKredible, Indian startups raised approximately $4.08 billion in funding during the third quarter of 2024. This amount included 85 growth and late-stage deals totaling $3.3 billion, along with 207 early-stage deals worth $754.26 million. Additionally, there were 58 undisclosed deals during this period. Notably, three new unicorns emerged in Q3: Ather, Rapido, and Moneyview. In total, six startups joined the unicorn club in 2024, all based in Bengaluru. In contrast, only two startups reached unicorn status in 2023, while 26 and 44 unicorns were born in 2022 and 2021, respectively. [Y-o-Y and M-o-M trend] In Q3 2024, Indian startups secured 352 deals totaling $4.08 billion, a slight decrease from the $4.27 billion raised across 363 deals in the previous quarter. Over the last seven quarters, Q3 2024 stands out as the second most funded period. Additionally, on a monthly basis, September achieved the second-highest funding with $1.63 billion, trailing behind the peak of $1.92 billion recorded in June. As of now, Indian startups have raised $11 billion in the first nine months of 2024, matching the total amount raised throughout 2023. [Top 10 growth stage deals in Q3] This growth can be largely attributed to Zepto’s remarkable $340 million funding round, closely followed by DMI Finance, which raised $334 million. Other significant contributors included PhysicsWallah, Rapido, Oyo, and Whatfix, each securing substantial funding. Notably, all top 10 growth-stage startups on the list have raised over $100 million each, including Purplle, Drip Capital, M2P Fintech, and InMobi. [Top 10 early-stage deals in Q3] Renewable energy services company BluePine led the early-stage startups with $28.8 million in funding. Following closely were AI firm Nutrix AI, EV companies Kinetic Green and Simple Energy, healthcare startup Even, fintech startup Centricity, and gen-z focused fast fashion D2C brand Newme, all of which made it into the top five. The complete list is available through TheKredible. [Mergers and Acquisitions] Merger and acquisition activity has surged to new heights. According to data compiled by TheKredible, Q3 saw 54 M&A deals, nearly matching the combined total of 55 deals in Q1 and Q2. The top acquisition in Q3 was OYO’s purchase of G6 Hospitality for $525 million, followed by Zomato’s acquisition of Paytm’s movies and ticketing business for $244 million. OYO also acquired Checkmyguest for $27.4 million. Other notable M&A activities included Nazara acquiring Pokerbaazi and Kiddopia, Redcliffe Labs acquiring Celara Diagnostics, HomeLane taking over Design Cafe, and Radio Mirchi’s parent company ENIL acquiring Gaana. [City and segment-wise deals] Bengaluru once again led the pack, with 122 startups from the city raising over $1.38 billion in funding during Q3, representing 34% of the total funding. Following closely, Delhi-NCR-based startups completed 91 deals amounting to $1.3 billion, accounting for nearly 32% of the total funding, putting them not far behind Bengaluru. Mumbai, Hyderabad, Chennai, and Pune were next on the list. Notably, Mumbai-based startups contributed to more than 21% of the total funding in the last quarter. Segment-wise, fintech was at the top with 61 startups raising over $1.15 billion. E-commerce, healthtech, SaaS, and AI startups were next on the list. Amount-wise, automotive tech startups raised more money than SaaS and healthtech. Agritech, foodtech, edtech, and proptech saw their downfall during the first half of 2024. Edtech secured $233 million in funding during the period, with PhysicsWallah alone raising $210 million. Agritech was one of the least funded segments, contributing just 1.39% to the total fundraising, while the electric vehicle (EV) sector accounted for nearly 5% of the total. [Stage-wise deals] In Q3 2024, seed and pre-seed stage startups completed 138 deals totaling over $168 million. Series A and pre-Series A rounds recorded 73 and 37 deals, respectively. Additionally, there were 23 debt funding rounds worth $314 million, contributing 7.72% to the overall total. For more details, check TheKredible. [Layoffs, shutdowns and departures] Layoffs continued to impact the ecosystem in Q3, with 10 companies letting go of more than 1,200 employees. However, this figure is significantly lower than the over 2,200 employees dismissed in Q2. Overall, approximately 4,500 employees received pink slips in the first nine months of 2024. In comparison, this year’s layoffs are notably better than the 24,000 layoffs recorded in 2023 and the 20,000 in 2022. Recent market conditions have led to an increase in business closures. In Q3, eight startups announced their shutdowns, including Koo, Wynk Music, and Greenikk. This figure surpasses the six shutdowns recorded in Q1 and Q2 combined. Meanwhile, the startup ecosystem experienced notable departures of top executives in Q3. According to data, 16 top-level executives, including CEOs, CBOs, CFOs, co-founders, managing directors, and presidents, have resigned. During the period, there were 77 key hirings. The full list can be accessed here. [Trends in Q3 2024] Agritech: Agritech continues to be one of the least funded segments in 2024, with over 30 startups raising only $150 million by September. This trend reflects ongoing challenges, as last year saw just $178 million in agritech funding, a significant drop from $772 million in 2022 and $636 million in 2021. Wealthtech: Wealthtech is witnessing rapid growth, with venture capitalists making significant investments over the past 12 months. According to data intelligence platform TheKredible, Indian wealthtech startups raised over $100 million across five deals in Q3. IPOs from Bengaluru: Following a wave of startup IPOs from Delhi NCR and Mumbai, Bengaluru is making strides in 2024. Ola Electric and Digit Insurance have already been listed, while Ather and Swiggy have submitted their Draft Red Herring Prospectus (DRHP). Additionally, co-working space startup IndiQube is also planning to launch its IPO soon. BharatPe settles with Ashneer Grover: Fintech company BharatPe has resolved its long-standing dispute with former co-founder and managing director Ashneer Grover. This settlement represents a significant development, particularly given the serious nature of the complaints filed by BharatPe against Grover. Titan Capital launches Indicorns: Titan Capital has introduced Indicorns, a new index that showcases profitable startups generating over Rs 100 crore in revenue. This initiative highlights the growing trend of self-sustaining businesses in India, illustrating that startups can achieve profitability without heavily depending on external funding.

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Layoffs, departures continue as Indian startups raise $1 Bn in April: Report

EntrackrEntrackr · 1y ago
Layoffs, departures continue as Indian startups raise $1 Bn in April: Report
Medial

The year 2024 started on a good note for Indian startups: an average of $1 billion in monthly funding, which is a significant growth when compared to the previous year during which monthly funding went below $500 million three times. In April 2024, however, startups crossed the $1 billion threshold on the back of a couple of pre-IPO funding, a few late-stage rounds, and debt deals. Indian startups raked in more than $1 billion across 124 deals in April, according to data compiled by startup data intelligence platform TheKredible. This included 36 growth-stage deals worth $813 million and 65 early-stage deals amounting to $225.75 million. Moreover, there were 23 undisclosed rounds, primarily early-stage deals. During the recent Startup Mahakumbh festival, Peak XV Partners’ managing director Rajan Anandan said that Indian startups are expected to raise $8 billion to $12 billion this year. He also added that around $20 billion of private capital is lying uninvested and is committed to investment in private firms and startups in India. This estimate appears close considering the current rate of monthly funding. [Month-on-Month and Year-on-Year trend] In April 2024, there was a 14% year-on-year jump in funding from $912 million in the same month last year. Even on a monthly basis, April almost matched March’s $1.18 billion funding. Interestingly, only one startup i.e. PharmEasy managed to raise funding in three digits during the last month. Since January, homegrown startups have raised close to $4 billion, and at this rate, it may cross the $11 billion funding raised in 2023. [Top growth stage deals] Healthcare startup PharmEasy’s $216 million pre-IPO round stood at the top, though its valuation dropped nearly 90% from $5.6 billion to $710 million during the latest fundraise. Financial services firm Northern Arc also announced its $80 million Series C round while Ola Electric raised $50 million in debt even after filing draft IPO papers. Altum Credo, ProcMart, SingleInterface, Infinity Fincorp, CloudExtel, and LetsTransport also featured in the top 10 growth stage deals in April. [Top early-stage deals] Omnichannel fashion startup Lyskraft, founded by Zomato’s co-founder Mohit Gupta and Myntra and Cultfit’s co-founder Mukesh Bansal, scooped up $26 million in a seed funding round and was on the top of the list in early-stage deals in April. Gen AI startup Neysa bagged $20 million whereas spacetech company Dhruva Space and edtech firm Emversity (Beyond Odds) raised $15 million and $11 million, respectively. The rest of the early-stage startups in the top 10 list raised less than $10 million each. The list includes Traya, LightFury Games, GTM Buddy, FincFriends, and Accacia. [City and segment-wise deals] City-wise, expectedly, Bengaluru-based startups are on top with 42 deals, contributing around 26% of the overall funding in April. Delhi-NCR and Mumbai followed with 30 and 26 deals, respectively. However, Mumbai-based startups topped the list in terms of the total amount raised. The list further counts Kolkata, Hyderabad, Pune, and Ahmedabad among others. Segment-wise, e-commerce startups (including D2C brands) and fintech startups co-led the list with 19 deals each followed by healthtech (16), SaaS (15), EV (5), automotive tech (4), and foodtech (4) startups among others. Visit TheKredible for more details. [Stage-wise deals] Series-wise, 44 startups raised funding in the Seed round followed by 20 Series A deals, 13 Pre-Series A, 11 Series B deals, and 7 Pre-Seed deals. As many as 14 startups raised debt funding worth $199.2 million during the period. [Mergers and acquisitions] Indian startups saw nearly a dozen mergers and acquisitions in April of which most deals were undisclosed. Among the disclosed deals, National Investment and Infrastructure Fund (NIIF) acquired a majority stake in digital infrastructure solutions company iBUS for about $200 million. US-based Aurionpro Solutions also acquired Indian fintech company Arya.ai for $16.5 million. The notable list of M&A also includes the acquisition of Shy Tiger brands by Ghost Kitchens India, Orbit by Postman, Awign by MyNavi, and Magzter by Dailyhunt’s parent company VerSe Innovations. [Layoffs, top-level exits, and shutdown/s] The mass firing in startups continued in April as they laid off nearly 1,500 employees during the month. April surpassed the cumulative layoffs of 1,100 employees during the first quarter of 2024. Troubled edtech company Byju’s remained on top with 500 layoffs, followed by The Good Glamm Group, Healthify, and Scaler with 150 layoffs each. Check the full list here. April also saw high-profile exits from startups including five chief executives. Sujot Malhotra, CEO of Beardo, Surinder Chawla, CEO of Paytm Payments Bank, Arjun Mohan, CEO of Byju’s India, Sukhleen Aneja, CEO of The Good Glamm Group’s D2C Brands Division and Hemanth Bakshi, CEO of Ola Cabs, have quit this month. Besides layoffs and departures, Nintee, a digital health startup launched by Wingify founder Paras Chopra, announced shutting down its operations after a year of launch. During the first three months of 2024, six startups announced their shutting down operations in India. [ESOP buyback] Employees’ stock buyback also continued in April as three growth-stage companies – Pocket FM, XYXX, and The Sleep Company – announced their ESOP buyback program last month. Pocket FM bought back $8.3 million worth of stocks from employees while the rest two did not disclose the transaction details. The March quarter saw four ESOP buybacks including MyGate, Meesho, Classplus, and Imagekit. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [Conclusion] While the trajectory of fund raising is positive, its quality might worry some, as it has gone to a firm that was clearly in distress and at a massive haircut (PharmEasy), besides the large, lumpy deal from NIIF. It might also be time to relook debt funding numbers as part of overall startup funding figures, as debt is usually taken by startups that are running operations sustainably from a financial perspective, or where founders do not want to dilute stakes any more. So it’s not quite the risk capital that equity funding is. With a host of IPOs being lined up, we expect the growth trajectory to sustain as pleased investors return to find the next big opportunity.

Indian startups mop up $2.77 Bn in March 2024 quarter: Report

EntrackrEntrackr · 1y ago
Indian startups mop up $2.77 Bn in March 2024 quarter: Report
Medial

Indian startups registered a steady growth in fund inflow during the first quarter of 2023 as they managed to cross $2.75 billion in funding. Importantly, funding in March stood out for crossing the $1 billion threshold for the first time in 2024. However, even as funding recovers, layoffs, shutdowns and departure of top-level executives continue to loom. Indian startups mopped up $2.77 billion across 326 deals in the March quarter or Q1 2024, as per data compiled by TheKredible. This included 74 growth-stage deals worth $1.87 billion and 213 early-stage deals amounting to $898 million. There were 39 undisclosed rounds. Unlike in the first quarter of 2023, two startups – Krutrim SI Designs and Perfios – entered the unicorn club after their latest fundraise in the first quarter of 2024. [Month-on-Month and Year-on-Year trend] March saw a decent jump in funding to $1.18 billion from $875 million in February and over $700 million in January. However, on a year-on-year basis, Q1 2024 recorded a fall from $12 billion in Q1 2022 and $3.4 billion in Q1 2023. [Top growth stage deals] Biotech startup Engrail scooped up $157 million in its Series B funding round to become the top-funded growth stage company in the first quarter of 2024. Audio series platform Pocket FM and logistics company Shadowfax managed to go past the $100 million funding mark in Q1 2024. Capillary Technologies, Perfios, Vivifi, Lohum, AiDash, ShareChat and Wow! Momo, were among the top 10 growth-stage deals. [Top early-stage deals] Digital lending platform mPokket, AI company Krutrim, energy tech company International Battery Company (IBC), blockchain company Avail, and generative AI startup Ema topped the list of early-stage startups. Check TheKredible for a full list. [City and segment-wise deals] City-wise, Bengaluru-based startups remain on top with 122 deals, contributing around 54% of the overall funding in the first quarter of 2024. Delhi-NCR and Mumbai followed with 77 and 54 deals, respectively. The list further counts Pune, Hyderabad, Chennai, Kolkata, Jaipur, Ahmedabad, and Thane among others. Segment-wise, e-commerce startups (including D2C brands) led the list with 64 deals followed by fintech (47), healthtech (31), SaaS (26), EV (15), AI (13), and edtech (13) startups. The complete breakdown of the city and segment can be found at TheKredible. [Stage-wise deals] Series-wise, 95 startups raised funding in Seed round followed by 71 Series A, 35 Pre-Series A, and 33 Pre-seed deals. Among early-stage, as many as 4 startups raised funding in their angel round. While 22 startups raised debt funding worth $276.65 million during the period. [Most active investors] Early-stage venture capital firm Inflection Point Ventures and Blume Ventures have emerged as the most active investors in Q1 2024 with 11 and 10 investments, respectively. Venture Catalysts was next on the list with nine deals followed by Fireside Ventures, Anicut, Accel, and Stride Ventures. The full list can be found at TheKredible. [Mergers and acquisitions] The first quarter of 2024 registered 26 merger and acquisition deals. Acquisition of Tapasya Educational Institutions by Veranda, InSemi by Infosys, Qdigi Services by Onsitego were the top 3 disclosed mergers and acquisitions deals. During the period, listed gaming firm Nazara’s subsidiary Nodwin acquired two startups: Comic Con India and Ninja Global FZCO. Among the undisclosed deals, Kuvera was acquired by fintech unicorn CRED, Captain Fresh took over CenSea while OneVerse acquired three startups including Spartan Poker, BatBall11, and Calling Station. Check the full list here. [Layoffs, shutdowns and departures] Layoffs continued in the March quarter as more than 1,100 employees received pink slips. Among them, foodtech company Swiggy topped the list with laying off of 350 employees followed by Cult.fit, InMobi, and Pristyn Care with 150, 125 and 120 employees, respectively. During the first quarter, five companies shut their operations. The list includes Resso, Rario, OKX India, GoldPe, and Muvin. Rario, however, added that it will launch a brand new platform that will enable users to play new and engaging cricket-based games. Besides layoffs and shutdowns, nearly two dozen top-level executives hung up their boots. Vijay Shekhar Sharma, founder of Paytm Payments Bank, resigned as the part-time non-executive chairman and board member of the company. Meanwhile, Third Wave Coffee’s chief executive officer Sushant Goel stepped down from his position to become a board member. The list also includes Indus Appstore CEO Rakesh Deshmukh, DealShare’s co-founder Sourjyendu Medda, and Fashinza’s co-founder Jamil Ahmed. [ESOP buyback] Amid all the ups and downs, the startup ecosystem witnessed employees stock buyback by growth and late-stage companies. For context, e-commerce company Meesho rolled out its largest ESOP buyback worth $25 million for 1,700 employees. Community management app MyGate and edtech company Classplus also announced their employee stock buyback program earlier this year. The full list can be found here. Visit TheKredible to see series-wise deals along with amount breakup, complete details of fund launches, and more insights. [Conclusion] As funding revives, it is safe to say that the trend in layoffs will also subside in the coming months, if not weeks. The strength in fintechs continues, and the category will continue to seek more money and throw up the next big startups, as scale arrives faster for many. Newer categories, be it AI, Chip Design, or niche parts of healthtech look set to emerge soon, going by the churning in the markets. The big hope is that the many corporate governance issues that have plagued the ecosystem in the past two years will also take a backseat now, thanks to lessons learnt hopefully. Looking at the numbers, especially for Q1 2022 ($12 billion), many would say that opportunities and capital have been wasted. But that is the very nature of the Startup world, with tiny amounts of money and a dollop of innovation sometimes achieving what no amount of money thrown at a problem doesn’t. We remain optimistic that by Q4 of this year, India’s startup ecosystem will be stronger and more diversified than ever before.

Indian startups show sign of recovery with $7 Bn funding in H1 2024

EntrackrEntrackr · 1y ago
Indian startups show sign of recovery with $7 Bn funding in H1 2024
Medial

The Indian startup ecosystem is going through a recovery phase: there have been larger funding rounds, an increase in the number of deals, a surge in secondary deals and ESOP buybacks, and a decline in layoffs. As per data compiled by TheKredible, Indian startups raised nearly $7 billion in funding during the first half of 2024. This is more than the $5.92 billion raised in H1 2023. But it’s also far less than $20 billion in H1 2022 which now seems like the golden phase for startups, at least in terms of venture capital inflow. The $7 billion funding consisted of 182 growth or late stage deals worth $5.4 billion and 404 early-stage deals worth $1.54 billion. Meanwhile, 99 were undisclosed deals. During the first half, Indian startups produced a couple of unicorns: Perfios and Krutrim SI Designs. In 2023, only two startups managed to go past the unicorn valuation while 2022 and 2021 saw the emergence of 26 and 44 unicorns, respectively. [Y-o-Y and M-o-M trend] As mentioned above, there is a significant increase in the number of startup deals and funding in H1 2024 from $5.92 billion in H1 2023. If we see the last four consecutive half yearly data, H1 2024 stands at the top in terms of total amount raised. The growth can be attributed to a bunch of $100 million plus rounds and mega deals bagged by late stage firms such as Zepto, Flipkart, PharmEasy and Lenskart. When it comes to month-on-month trends, June saw nearly $2 billion in funding which is more than double of the average of $1 billion monthly funding until May this year. [Top 10 growth stage deals in H1] Late stage companies such as Zepto, Flipkart, PharmEasy and Lenskart were on the top with $665 million, $350 million, $216 million, and $200 million funding, respectively. Lenskart’s $200 million funding was a pure secondary transaction play whereas Zepto may have also had some secondary component in the last funding round. Overall, all startups in the top 10 list have raised more than $100 million each during the first six months of 2024. The list includes Engrail, Atlan, Pocket FM, Nephroplus, SEDEMAC and Shadowfax. [Top 10 early stage deals in H1] Invite-only networking platform SCOPE led the funding chart for early stage startups with $90 million funding. This was followed by AI startup Krutrim, blockchain startup Avail, e-commerce startup Indkal and battery tech startup IBC. Lyskraft, Ema, StockGro, Hunch and Rozana also made it to the top 10 list of early stage deals. Notably, more than 30 early stage startups have raised over $10 million each during H1 2024. [Mergers and Acquisitions] The first half of 2024 saw 55 mergers and acquisitions, which is lower when compared to the previous years. The year 2021 saw more than 250 mergers and acquisitions which declined to 204 in 2022 and further reduced to 145 in 2023. Even if we double the number of M&A, it will hover around 100 in total by the end of 2024. There were stress deals during the period which included the acquisition of ZestMoney by DMI Group, MX Player by Amazon, Kuvera by CRED, Spartan Poker by OneVerse, and ET Money by 360 One (formerly IIFL Wealth). Check the list for more details: [City and segment wise deals] Bengaluru, once again topped the list with 253 startups from the city having raised more than $2.83 billion in funding during 2023. This accounted for 40% of the total funding. Delhi-NCR-based startups followed with 164 deals amounting to $1.3 billion. Mumbai, Hyderabad and Pune made it to the top five list. Notably, Mumbai-based startups contributed to nearly 22% of the total funding whereas Delhi NCR-based startups accounted for 18.76% of the overall fund inflow. Segment wise, e-commerce was at the top with 124 startups raising over $1.87 billion. Fintech, healthtech, SaaS and EV startups were next on the list. Amount wise, EV startups raised more money than SaaS and healthtech. Agritech, foodtech, edtech and proptech saw their downfall during the first half of 2024. [Stage wise deals] In H1 2024, seed and pre-seed stage startups saw 266 deals amounting to more than $457 million. Series A and pre Series A saw 134 and 80 deals, respectively. There were 58 debt funding worth $784 million and 5 pre-IPO rounds worth nearly $250 million. Check TheKredible for more details. [Layoffs, shutdowns and departures] Layoffs, shutdowns and departures continued even in 2024. However, there was a sharp decline when compared with the previous years. For context, Indian startups saw 3,300 people being laid off during H1 2024 which is roughly one-third of the over 9,000 in H2 2023 and 15,000 in H1 2023. Byju’s, ReshaMandi, Swiggy, Ola, Cult.fit, Healthifyme, Scaler and PrepLadder topped in terms of laying off employees during the first half. During the first quarter of 2024, five companies shut their operations. The list includes Resso, Rario, OKX India, GoldPe, and Muvin. Rario added that it will launch a brand new platform that will enable users to play new and engaging cricket-based games. However, only one startup announced its shutdown during the second quarter taking the overall shutdown to six in H1. In 2023, more than 15 startups shut their operations. High profile departures were a big concern during the first half of 2024. As per data compiled by TheKredible, 45 top level executives left their posts. These include co-founders, CEOs, CFO, CBO, COO, and managing directors, among others. [Comparison] For a better understanding of startup funding, we have created a comparison graph for the first and second quarter of the year which showed that the number of deals and total funding saw an uptick in Q2 when compared to Q1. [Trends in H1 2024] Surge in generative AI and spiritual tech deals: Overall, AI startups saw 27 deals amounting to $237 million. Generative AI startups grabbed a significant portion of the total funding. In the past six months, these startups have managed to mope up nearly $100 million. The list includes Sarvam AI, Ema, Neysa, Vodex, and KonProz, among others. Spiritual tech startups also saw an uptick in the number of deals. In the ongoing calendar year, such startups have raised more than $36 million and some new rounds are in the pipeline. Maiden funding for established fashion brands: During H1, a clutch of fashion and apparel brands raised their maiden institutional round. In May, A91 Partners led a $21 million round in TechnoSport whereas Libas raised $18 million led by ICICI Venture’s fund. Recently, Rare Rabbit raised $18 million in primary capital led by A91 Partners. The round is expected to close at around $50 million. ESOP and secondary deals: More than 10 startups announced their ESOP buyback program worth nearly $58 million in H1 2024. While the majority of them did not disclose the amount, Meesho, Urban Company and Pocket FM announced their largest ESOP buyback program. Similarly, secondary transactions have also increased during the first six months. Some of the biggest beneficiaries of secondary transactions are Lenskart, Meesho, Shadowfax, Fibe, Wow! Momo, Porter, among others. Startup IPOs on the rise: In the ongoing calendar year, TBO tech, Digit Insurance, Awfis and Ixigo have been listed on the stock exchanges while Unicommerce, FirstCry and Ola Electric got final approval from SEBI and Mobikwik, Swiggy and Avanse have been waiting for approval from the market regulator. Overall, 2024 appears to have better prospects for startups in the public market. In 2021, more than 10 startups listed on stock exchanges. This number plummeted in 2022 (two IPOs) and 2023 (five IPOs). Moreover, a bunch of companies are assessing the right time to launch their IPO, Zepto, Flipkart, PharmEasy, The Good Glamm Group, and others may announce their exact IPO timeline anytime soon. Debt deals: Besides increase in equity and secondary deals, debt deals also contributed a significant portion in H1. As per data, H1 2024 saw 57 debt only deals amounting to $784 million. There were several deals which included equity as well as debt components. However, we couldn’t ascertain the actual breakdown of such deals which may push the overall debt to more than $1 billion in the said period. [Conclusion] While the peaks of H1 2022 might take some time to be reached and crossed again, considering the typical cycle of at least 3-5 years for such funding peaks, things are certainly improving fast. While stability in government helps, it is the booming stock markets that will drive funding for startups too, as investors cash out gains and redeploy from successful IPOs or broader market gains. Ironically, many firms that could barely get VC or PE funding have managed IPOs in recent weeks, further underscoring the case for a correction in the stock markets or a diffusion of the bullishness to startup funding as well. But while the markets will continue to value revenues and some profitability ideally, the real job of backing ideas and innovations will also benefit as multiple VCs, family offices and other investors return to the startup funding market to seed the next crop of startups.

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