The Indian startup ecosystem experienced a remarkable resurgence in the third quarter of 2024, welcoming three new unicorns as mega deals reached an impressive total of 10. Startups like Zepto, PhysicsWallah, and Rapido were pivotal in this growth, each raising over $100 million in their respective funding rounds.
The latest entrants into the unicorn club—Moneyview, Rapido, and Ather Energy—reflect the same pace of growth as seen in the first half of the year, demonstrating a robust startup landscape. Overall, the total funding for Indian startups soared to $3.4 billion in Q3 2024, marking a substantial 100% increase year-on-year. This uptick follows a quieter funding environment in the first half of the year.
A key driver of this growth was the notable increase in late-stage funding, which saw 10 startups secure funding exceeding $100 million during the July to September period. This quarter recorded the highest number of mega deals since Q2 2022, with notable contributions from companies such as Zepto, PhysicsWallah, Rapido, OYO, Whatfix, Purplle, Drip Capital, BlueStone, M2P Fintech, and InMobi.
The rise in mega deals has naturally led to an increase in the number of startups achieving unicorn status. Three startups joined this exclusive group in Q3, matching the number that did so in the first half of 2024.
Among the newest unicorns, fintech startup Moneyview raised a modest $4.6 million in equity funding from Accel India and Nexus Ventures, achieving a valuation of $1.2 billion. Meanwhile, ride-hailing startup Rapido secured $200 million in its Series E funding round, elevating its valuation to $1.1 billion just days prior.
Ather Energy, a key player in the electric vehicle sector, also made headlines by raising $71 million from the National Investment and Infrastructure Fund (NIIF), resulting in a post-money valuation of $1.3 billion. Following this funding, Ather Energy filed its draft red herring prospectus (DRHP) with SEBI for an ambitious INR 3,100 crore IPO.
It’s important to highlight that in the first half of the year, three startups—Krutrim, led by Bhavish Aggarwal, fintech SaaS company Perfios, and travel tech SaaS firm RateGain—achieved unicorn status.
Driven by the surge in mega deals, late-stage startup funding skyrocketed by 115% in the September quarter, reaching $2.1 billion, up from the $984 million raised during the same period last year. Additionally, the Indian startup ecosystem experienced a 135% increase in late-stage deal count, totaling 40 deals. Notably, the number of mega deals in Q3 2024 was 42% higher than the seven recorded in the first half of the year. In H1 2024, late-stage startups collectively raised $2.7 billion, reflecting an 18% decline from the $3.3 billion secured in the first half of 2023.
Overall, Indian startups amassed $5.3 billion in funding during the first six months of 2024, a slight decrease of 1.8% from the $5.4 billion raised in H1 2023.
While late-stage funding faced a downturn in the first half of the year, seed and growth-stage funding witnessed significant growth. Seed-stage funding increased by 23% to $589 million in H1 2024, up from $479 million the previous year, while growth-stage funding rose by 21% to $1.7 billion, compared to $1.4 billion in H1 2023.
This upward trend in seed and growth-stage funding carried over into Q3 2024. Seed-stage startups secured $360 million across 125 deals during the September quarter, marking a substantial 126% increase from the $159 million raised through 129 deals in the same period last year. Likewise, growth-stage startups raised $847 million through 65 deals in Q3, representing a remarkable 91% jump from the $443 million raised across 32 deals in Q3 2023.
With these developments, India’s startup ecosystem is poised for a vibrant future, marked by increased investment and innovation.