Bain – India Venture Capital Report, 2024

In 2023, India's venture capital landscape experienced challenges amidst resilience, with VC funding moderating globally but India maintaining its second-largest status in Asia-Pacific. Factors such as inflation, global GDP softening, and geopolitical uncertainties affected investor confidence, leading to declines in deals and average deal sizes. Tech sectors remained dominant, but investors shifted focus to traditional sectors with strong tailwinds. Notable green shoots and resilience were seen in sectors like consumer tech and generative AI. Despite macroeconomic challenges, the ecosystem showed resilience through strategic measures and a shift towards profitability. In 2024, there is renewed optimism with bold founders, diversifying revenue streams, and effective government policies supporting the start-up landscape. Noteworthy trends included democratization in deployment, increased exit activity, and a visible shift towards optimism for the future with adaptations to the new normal and a focus on profitability and deep-tech innovation. India's robust fundamentals are expected to continue fueling optimism among investors in the long term.