Investors Tiptoe Back Into Indian Startups After a Slow Year

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After the Freeze, India’s Startups See Early Signs of a Thaw
The money isn’t exactly pouring in — but it’s trickling back.

Startups in India raised around $11.3 billion in 2024, according to a new report by Nasscom. That’s a mild jump from last year’s $10.7 billion and a possible signal that the worst of the funding slowdown may be behind us.

It’s a far cry from the boom of 2021–22, when startups were flush with cash and valuations shot through the roof. But the tone now is different: more cautious, more focused, and a lot more selective.

Most of the funding is going to companies that are already up and running — businesses with customers, revenue, and a clearer path to growth. The second half of the year saw more than 540 deals, mostly in the mid-to-late stages.
Sectors like AI, climate tech, and enterprise software are drawing attention. Early-stage startups, meanwhile, are finding it tougher to get a foot in the door.

India still holds its spot as the third-largest startup hub in the world, after the U.S. and U.K. That helps — even a little credibility goes a long way when global investors are watching their wallets.

No one’s calling it a comeback yet. But it’s a start.

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