The VCs & their Funding Outlook 2024: A Scenario from Headwind to Tailwind
Venture capital is important to the growth of new companies in India. In simple terms, venture capitalists are investors that invest money into start-ups that could expand significantly in return for a stake in the business. India has emerged as a successful hub for investing funds over the years, and several VCs offer finance to innovative and rapidly expanding companies.
The year 2024 started slow yet it has been steadfast in raising funds and helping startups to bloom and boom. And the venture capitalists have immensely contributed in this change and improvement. Day-by-day startups are multiplying, thus higher investments are rising, and there is a need to analyze the performance of venture capitalists in the country. Looking at the growth rate of funds, it is important to analyze and talk about a few of the best venture capital firms, this article will look into the functions of VCs in the startup ecosystem of India in 2024.
Venture Capitalists Contribution to India's Development
VCs play a very essential role in the growth and development of Indian start-up companies, as they invest funds on startups that might not have conventional loans or finance but have much room to develop. The VC gets a part of the business and often lends experience to guide the venture.
VCs support startups in a various ways. In addition to offering financial assistance, they also provide helpful connections, coaching, and company strategy support. This assistance can have a significant impact, particularly for startups aiming for rapid expansion.
For the Indian economy, venture capital is important. It triggers innovation and brings in novel ideas into the market. VCs help develop new industries and technology, thereby contributing to economic growth, as well as job generation through good posts in startups.
According to a GlobalData report, venture capital funding in India rose by 50.4 percent year-on-year to $8.3 billion in the first three quarters of the year 2024. More than $100 million deals were reported, reviewed by data analytics and consulting company.
The Startup Landscape in India in 2024
The Indian startup sector is booming in 2024. More and more new ventures are being formed; many of them attract the attention of venture investors. Today, there are startups in almost all types of industries adding to the growth and development of the Indian economy.
Technology is the driving force for all types of standardization, as it has great potential for adding value to all types of products, services, and solutions. Many entrepreneurs have come up with innovative ideas leveraging advanced technologies like AI, AR/VR, blockchain, and more. Through these innovations, people are changing the way they live and operate their businesses in India.
More successful startups are also emerging, particularly unicorns, or startups valued at more than $1 billion. This indicates that the startup ecosystem is growing and more startups are achieving unimaginable success. With new possibilities and creative ideas popping up by various startups, 2024 is a well-planned year for India's startup eco-system.
India's Top 10 Venture Capital Firms for 2024 Investments
The number of venture capital firms investing on Indian startups has drastically increased in the year 2024. From January to September (Q1-Q3) 2024, India saw 883 venture capital (VC) funding deals worth $8.3 billion.
Such companies have been instrumental in the expansion and growth of the socio-economic status in India. The following list shortlisted is the top ten venture capital firms investing on Indian Startups:
1. Stride Ventures: Stride is a venture debt firm based in New Delhi founded by Ishpreet Singh Gandhi in 2019. In the first half of this year, it supported around 46 startups, including notable investments in LendingKart’s ₹100 crore funding round and electric vehicle companies like Ola Electric and Ather Energy.
Stride claims to have over 140 startups in its portfolio, which includes companies from various sectors such as fintech, agritech, B2B, SaaS, and mobility. Some of the startups in its portfolio are Bira91, BluSmart, BlueStone, Infra.market, and Jupiter. In 2024, Stride also successfully closed its Stride Ventures India Fund III, raising $165 million.
2. Accel India: In India, Accel is preparing to invest in its eighth startup, aiming to raise $600-700 million by the end of 2024. This will be the first major venture capital fundraising since the funding slowdown in 2022, resulting in boosting the market value soon.
The firm's stable team and strong history of success is likely to attract interest from investors. Accel is known for its early investments in companies like Flipkart and Freshworks and wants to keep its focus on early-stage startups. The company culture is praised for its teamwork and approach to failures by identifying the gaps in the sector has been identified.
3. Ah! Ventures: In the first half of 2024, the Mumbai-based venture capital firm supported 28 startups, including Agrielectric, a company in the agritech sector, Barbrew Beverages, which specializes in alcoholic beverages, and Push Sports, focusing on sports education and infrastructure.
Founded in 2009 by Abhijeet Kumar and Harshad Lahoti, the firm primarily invests in early-stage startups with funding amounts under $10 million. To date, they have invested in 127 startups and successfully completed 17 exits. Their portfolio features companies such as Parksmart, Niki.Ai, LoanAdda, and many others.
4. 3one4 Capital: The venture capital firm based in India, 3one4 Capital, invests in early-stage startups. They are committed to supporting innovative companies in sectors such as technology, consumer goods, and healthcare. The firm aims to help these startups grow by providing not only financial support, but also a guidance.
3one4 Capital is a venture capital firm founded in 2015, based in Bengaluru, India. Over the past 9 years, it has invested in 118 companies, at an average rate of 12 new investments each year since past 5 years.
In 2024, 3one4 Capital has made 11 investments so far. The most recent investments are on Everstage and AGNIT Semiconductors.
5. Bessemer Venture Partners: Bessemer Venture Partners invests in the tech-service-based and software-based businesses that commonly operate in SaaS (Software as a Service) lines of business. The firms facilitate long-term growth by providing companies with capital, strategic counsel, and broader connectivity to networks.
They closed almost $2.475 billion BVP XI fund focused on early-stage companies, $825 million Century II fund designed for growth-stage companies, and our first dedicated $220 million India fund to back the next generation of innovators in the country.
In 2024, Bessemer Venture Partners has invested in 808 companies, including 66 unicorns; top firms are Okta and Shopify.
6. Nexus Venture Partners: Their focus of investment is consumer services and technology, till date the company has raised its largest India fund of $700 million. They help businesses grow and compete in the market by focusing on early as well as growth-stage companies. Nexus has funded many of India's profitable consumer and tech companies.
Nexus Venture Partners has made 24 investments in 2024 in that Zinc and Neysa are the latest among them.
7. Matrix Partners India: Matrix Partners India focuses on early-stage investments, particularly on internet-based and technology businesses. The firm aims to support new businesses with innovative ideas and ample space for growth rapidly specifically focusing on businesses related to consumer technology, software, and mobile apps.
In 2024, they have invested around $97 million on Neysa, Atomicwork, Seeds Fincap, dezerv, Rocketlane, Amica Finance, GreyLabs AI, Trampoline, and Foxtale.
8. Chiratae Ventures: Chiratae Ventures is a venture capital fund established in 2006. It is headquartered in Bengaluru, India. They are committed to supporting entrepreneurs through providing funding and guidance.
The company has invested in 178 companies in the last 17 years, with an average of 11 new investments every year in the last 10 years. In 2024, they have made 20 investments on Flipkart, Tencent, Myntra, Lenskart, Firstcry, Rentomojo, Cult.fit, Healthifyme, Newgen, and Thirdlove.
9. Kalaari Capital: Kalaari Capital focuses on early-stage investments, mainly on tech-based enterprises. Through funding, mentoring, and strategic guidance, they help small businesses scale up. Kalaari has successfully invested in finance, education, and e-commerce sectors across India. Kalaari Capital has raised a total of $850 million and has funded over 110 startups.
In 2024, they have invested around $51 million on the startups including, Figr, Clean Electric, Convin, Hyperbots, kindlife, byteXL, LXME, Portl, and StanPlus.
10. Blume Ventures: Early-stage investor Blume Ventures focuses on businesses that are digitally first. They place their bet on new businesses of innovation and technology.
Blume, founded by Karthik Reddy and Sanjay Nath in 2011, supports early-stage startups and claims to remain ‘lifelong partners’ for the startups. Since its inception, the Mumbai-based VC firm has invested in 315 startups, including Slice, Classplus, and Spinny. The venture capital firm invested in 17 startups during the first half of 2024, encompassing names such as Battery Smart, Bambrew, Euler Motors, and Multipl. Now, all together, they have made 42 investments in 2024.
Conclusion
By 2024, India’s venture capital scene is expected to change a lot. Startups are growing quickly, and many investors are taking initiation. It is India’s large market and skilled workforce making it an appealing place for investments. Right now, there is a strong focus on technologies like artificial intelligence, digital payments, and blockchain, which are bringing about significant changes in the industry.
In the coming years, we expect to see investments and developments by 2025. The Indian market is growing, helping its companies compete better around the world. Venture capitalists are looking for companies that can create lasting value and make a difference with their products and solutions.
The year 2024 started slow yet it has been steadfast in raising funds and helping startups to bloom and boom. And the venture capitalists have immensely contributed in this change and improvement. Day-by-day startups are multiplying, thus higher investments are rising, and there is a need to analyze the performance of venture capitalists in the country. Looking at the growth rate of funds, it is important to analyze and talk about a few of the best venture capital firms, this article will look into the functions of VCs in the startup ecosystem of India in 2024.
Venture Capitalists Contribution to India's Development
VCs play a very essential role in the growth and development of Indian start-up companies, as they invest funds on startups that might not have conventional loans or finance but have much room to develop. The VC gets a part of the business and often lends experience to guide the venture.
VCs support startups in a various ways. In addition to offering financial assistance, they also provide helpful connections, coaching, and company strategy support. This assistance can have a significant impact, particularly for startups aiming for rapid expansion.
For the Indian economy, venture capital is important. It triggers innovation and brings in novel ideas into the market. VCs help develop new industries and technology, thereby contributing to economic growth, as well as job generation through good posts in startups.
According to a GlobalData report, venture capital funding in India rose by 50.4 percent year-on-year to $8.3 billion in the first three quarters of the year 2024. More than $100 million deals were reported, reviewed by data analytics and consulting company.
The Startup Landscape in India in 2024
The Indian startup sector is booming in 2024. More and more new ventures are being formed; many of them attract the attention of venture investors. Today, there are startups in almost all types of industries adding to the growth and development of the Indian economy.
Technology is the driving force for all types of standardization, as it has great potential for adding value to all types of products, services, and solutions. Many entrepreneurs have come up with innovative ideas leveraging advanced technologies like AI, AR/VR, blockchain, and more. Through these innovations, people are changing the way they live and operate their businesses in India.
More successful startups are also emerging, particularly unicorns, or startups valued at more than $1 billion. This indicates that the startup ecosystem is growing and more startups are achieving unimaginable success. With new possibilities and creative ideas popping up by various startups, 2024 is a well-planned year for India's startup eco-system.
Infusing invaluable investments to ignite innovation and fuel entrepreneurship, VCs are the success force of the Indian startup ecosystem and spirit enablers of instrumental mentorship and networking opportunities
India's Top 10 Venture Capital Firms for 2024 Investments
The number of venture capital firms investing on Indian startups has drastically increased in the year 2024. From January to September (Q1-Q3) 2024, India saw 883 venture capital (VC) funding deals worth $8.3 billion.
Such companies have been instrumental in the expansion and growth of the socio-economic status in India. The following list shortlisted is the top ten venture capital firms investing on Indian Startups:
1. Stride Ventures: Stride is a venture debt firm based in New Delhi founded by Ishpreet Singh Gandhi in 2019. In the first half of this year, it supported around 46 startups, including notable investments in LendingKart’s ₹100 crore funding round and electric vehicle companies like Ola Electric and Ather Energy.
Stride claims to have over 140 startups in its portfolio, which includes companies from various sectors such as fintech, agritech, B2B, SaaS, and mobility. Some of the startups in its portfolio are Bira91, BluSmart, BlueStone, Infra.market, and Jupiter. In 2024, Stride also successfully closed its Stride Ventures India Fund III, raising $165 million.
2. Accel India: In India, Accel is preparing to invest in its eighth startup, aiming to raise $600-700 million by the end of 2024. This will be the first major venture capital fundraising since the funding slowdown in 2022, resulting in boosting the market value soon.
The firm's stable team and strong history of success is likely to attract interest from investors. Accel is known for its early investments in companies like Flipkart and Freshworks and wants to keep its focus on early-stage startups. The company culture is praised for its teamwork and approach to failures by identifying the gaps in the sector has been identified.
3. Ah! Ventures: In the first half of 2024, the Mumbai-based venture capital firm supported 28 startups, including Agrielectric, a company in the agritech sector, Barbrew Beverages, which specializes in alcoholic beverages, and Push Sports, focusing on sports education and infrastructure.
Founded in 2009 by Abhijeet Kumar and Harshad Lahoti, the firm primarily invests in early-stage startups with funding amounts under $10 million. To date, they have invested in 127 startups and successfully completed 17 exits. Their portfolio features companies such as Parksmart, Niki.Ai, LoanAdda, and many others.
4. 3one4 Capital: The venture capital firm based in India, 3one4 Capital, invests in early-stage startups. They are committed to supporting innovative companies in sectors such as technology, consumer goods, and healthcare. The firm aims to help these startups grow by providing not only financial support, but also a guidance.
3one4 Capital is a venture capital firm founded in 2015, based in Bengaluru, India. Over the past 9 years, it has invested in 118 companies, at an average rate of 12 new investments each year since past 5 years.
In 2024, 3one4 Capital has made 11 investments so far. The most recent investments are on Everstage and AGNIT Semiconductors.
5. Bessemer Venture Partners: Bessemer Venture Partners invests in the tech-service-based and software-based businesses that commonly operate in SaaS (Software as a Service) lines of business. The firms facilitate long-term growth by providing companies with capital, strategic counsel, and broader connectivity to networks.
They closed almost $2.475 billion BVP XI fund focused on early-stage companies, $825 million Century II fund designed for growth-stage companies, and our first dedicated $220 million India fund to back the next generation of innovators in the country.
In 2024, Bessemer Venture Partners has invested in 808 companies, including 66 unicorns; top firms are Okta and Shopify.
6. Nexus Venture Partners: Their focus of investment is consumer services and technology, till date the company has raised its largest India fund of $700 million. They help businesses grow and compete in the market by focusing on early as well as growth-stage companies. Nexus has funded many of India's profitable consumer and tech companies.
Nexus Venture Partners has made 24 investments in 2024 in that Zinc and Neysa are the latest among them.
7. Matrix Partners India: Matrix Partners India focuses on early-stage investments, particularly on internet-based and technology businesses. The firm aims to support new businesses with innovative ideas and ample space for growth rapidly specifically focusing on businesses related to consumer technology, software, and mobile apps.
In 2024, they have invested around $97 million on Neysa, Atomicwork, Seeds Fincap, dezerv, Rocketlane, Amica Finance, GreyLabs AI, Trampoline, and Foxtale.
8. Chiratae Ventures: Chiratae Ventures is a venture capital fund established in 2006. It is headquartered in Bengaluru, India. They are committed to supporting entrepreneurs through providing funding and guidance.
The company has invested in 178 companies in the last 17 years, with an average of 11 new investments every year in the last 10 years. In 2024, they have made 20 investments on Flipkart, Tencent, Myntra, Lenskart, Firstcry, Rentomojo, Cult.fit, Healthifyme, Newgen, and Thirdlove.
9. Kalaari Capital: Kalaari Capital focuses on early-stage investments, mainly on tech-based enterprises. Through funding, mentoring, and strategic guidance, they help small businesses scale up. Kalaari has successfully invested in finance, education, and e-commerce sectors across India. Kalaari Capital has raised a total of $850 million and has funded over 110 startups.
In 2024, they have invested around $51 million on the startups including, Figr, Clean Electric, Convin, Hyperbots, kindlife, byteXL, LXME, Portl, and StanPlus.
10. Blume Ventures: Early-stage investor Blume Ventures focuses on businesses that are digitally first. They place their bet on new businesses of innovation and technology.
Blume, founded by Karthik Reddy and Sanjay Nath in 2011, supports early-stage startups and claims to remain ‘lifelong partners’ for the startups. Since its inception, the Mumbai-based VC firm has invested in 315 startups, including Slice, Classplus, and Spinny. The venture capital firm invested in 17 startups during the first half of 2024, encompassing names such as Battery Smart, Bambrew, Euler Motors, and Multipl. Now, all together, they have made 42 investments in 2024.
Conclusion
By 2024, India’s venture capital scene is expected to change a lot. Startups are growing quickly, and many investors are taking initiation. It is India’s large market and skilled workforce making it an appealing place for investments. Right now, there is a strong focus on technologies like artificial intelligence, digital payments, and blockchain, which are bringing about significant changes in the industry.
In the coming years, we expect to see investments and developments by 2025. The Indian market is growing, helping its companies compete better around the world. Venture capitalists are looking for companies that can create lasting value and make a difference with their products and solutions.
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