tartup India Scheme. Credit: startupindia.gov.in
In 2024, the Indian startup ecosystem experienced a significant increase in large funding rounds, particularly those exceeding $100 million, as startups shifted their focus toward profitability along with growth.
So far in 2024, there have been 13 funding rounds valued at over $100 million. Notable startups such as Zepto, Rapido, Lenskart, Flipkart, Meesho, and PharmEasy have all participated in these large funding rounds.
Quick e-commerce company Zepto, for example, has raised two major rounds of funding in 2024, amounting to a total of $1 billion ($340 million + $665 million). The company’s most recent funding round brought in $340 million, raising its valuation to $5 billion.
Rapido, a popular taxi service provider, secured $200 million in funding, bringing its valuation to $1.1 billion. Similarly, Lenskart, an eyewear startup, has raised $200 million in funding this year, with a valuation of around $5 billion.
Other major funding rounds in 2024 include Flipkart, which raised $350 million, Meesho with $275 million, and PharmEasy with $216 million.
In a bid to further support startups, the Indian government abolished the angel tax in its 2024–25 budget. This move aims to assist startups in raising funds from foreign investors, a crucial step for many early-stage companies seeking capital to drive growth.
Additionally, over the past week, 31 homegrown startups raised more than $466 million across 22 deals, highlighting the continued strength of India’s startup landscape.
In India, the fintech sector has also seen remarkable growth, with the number of fintech companies quadrupling in the past four years. Over the same period, the number of unicorns (startups valued at $1 billion or more) and soonicorns (startups on the path to becoming unicorns) has tripled.
As of June 30, the Indian government had officially recognized 1,40,803 entities as startups. The central government has implemented more than 55 regulatory reforms since 2016 to facilitate business operations, raise capital, and lessen the compliance burden on startups.
Meanwhile, the Central government has approved funding for four technical textile startups. Each startup will receive a grant of Rs 50 lakh. Key strategic areas like composites, sustainable textiles, and smart textiles are the focus of these projects. Furthermore, we have introduced new courses in various textile applications to support this growing sector.
