In the first half (H1) of 2024, the Indian startup ecosystem had sluggish financing trends; however, in the third quarter (Q3) of the same year, investment gained up speed. 

According to Inc42's "Indian Tech Startup investment Report, Q3 2024" report, the total amount of investment raised by domestic companies between July and September of 2024 increased by 100% year over year to $3.4 billion.  This growth was mostly driven by a notable increase in late stage funding. Ten firms in the startup ecosystem received funding over $100 million in the course of the three-month period. 

As a matter of fact, the quarter saw the most megadeals since Q2 2022.   Zepto, PhysicsWallah, Rapido, OYO, Whatfix, Purplle, Drip Capital, BlueStone, M2P Fintech, and InMobi were among the companies that raised over $100 million in a single round during that time.   

In the September quarter, more startups achieved unicorn status as a result of the increase in blockbuster transactions. During the July–September period, three firms joined the unicorn club, compared to three startups in the first half of 2024.  It is interesting to note that Moneyview, a fintech firm, became the newest unicorn member of the club by raising just $4.6 million in equity capital from Accel India and Nexus Ventures, valued at $1.2 billion.   The ride-hailing service Rapido raised $200 million in its Series E fundraising round just a few days before Moneyview, valued at $1.1 billion.   Before Rapido, EV giant Ather Energy received $71 million in August from National Investment and Infrastructure Fund (NIIF), an existing investor, at a post-money valuation of $1.3 billion. 

The two-wheeler maker then submitted its draft red herring prospectus (DRHP) for an INR 3,100 Cr initial public offering (IPO) to SEBI.   Notably, the number of mega deals in Q3 2024 was 42% greater than the seven deals in the first half of 2024. Late-stage startups raised a total of $2.7 billion in H1 2024, which is 18% less than the $3.3 billion they raised in the first half of 2023.   

Overall, Indian entrepreneurs altogether raised capital of $5.3 Bn in the first six months of 2024, down 1.8% from $5.4 Bn in H1 2023.   Seed and growth stage investment increased significantly in the first half of the project, but late stage funding decreased. Growth-stage capital increased 21% to $1.7 billion from $1.4 million in H1 2023, while seed stage funding shot up 23% to $589 million in H1 2024 from $479 million the previous year.   Funding at the seed and growth stages kept H1 moving forward in Q3 2024. A year earlier, seed stage businesses & unicorn to be ventures raised $159 Mn through 129 deals; in the September quarter, they raised $360 Mn through 125 deals, a 126% increase. Likewise, growth stage firms completed 65 agreements in Q3, raising $847 million, a 91% increase over the $443 million they completed through 32 acquisitions in the September quarter of 2023.