India recorded the second highest number of newly minted unicorns globally in 2024, adding six new companies to the elite group, according to a recent report. This brought the cumulative valuation of all Indian unicorns to over $220 billion, highlighting the country’s growing clout in the global startup arena. The report, jointly prepared by Nasscom and consulting firm Zinnov, was released alongside the ‘Startup Mahakumbh’ event.
The study found that unicorns—startups valued at over $1 billion—accounted for 33 percent of the total funding raised by Indian startups in 2024, signifying their strong influence on overall investment trends.
India’s tech startup ecosystem experienced a notable revival in 2024, marked by a 23 percent year-on-year increase in total funding, which rose to $7.4 billion. Deal activity also picked up considerably, with a 27 percent increase in the number of deals compared to 2023. This resurgence was mirrored in the formation of new startups—there was a 2.1 times increase in the number of newly established tech startups during the year, bringing the overall number of Indian tech startups to an estimated 32,000 to 35,000.
Rajesh Nambiar, President of Nasscom, commented on the evolving landscape, stating, “The growth across mature and emerging sectors, specifically in DeepTech and AI, outlines the Indian tech startup ecosystem’s growing maturity, evolving from being just a hub of opportunities to becoming a strategic force driving India’s digital economy.”
He emphasized the importance of DeepTech startups in India’s innovation-driven future, noting, “DeepTech startups play an increasingly crucial role in shaping India’s innovation landscape. Our focus now must be on strengthening the foundational pillars of this growth, from enhancing capital access to building robust innovation infrastructure, ensuring our startups can compete globally while solving uniquely Indian challenges.”
When examining funding trends based on company maturity levels, seed-stage startups witnessed the most significant growth in funding share, increasing by 29 percent over 2023. Early-stage startups followed closely with a 25 percent rise, while late-stage companies recorded a 21 percent growth in funding share. This shift signals a broader investor interest in nurturing newer businesses and untested ideas.
A major chunk of tech startup funding—around 67 percent—was directed towards mature sectors. These are industries with high aggregate funding volumes and a considerable share of overall deals, showing that investor confidence remained strong in sectors that had already demonstrated market potential.
One of the standout developments in the Indian tech space in 2024 was the surge in DeepTech investments. Funding in DeepTech, which includes areas such as artificial intelligence, machine learning, robotics, and advanced analytics, soared by 78 percent to reach $1.6 billion. This leap reflects a growing interest in frontier technologies and their transformative impact across sectors.
Pari Natarajan, CEO of Zinnov, underscored India’s expanding role as an innovation powerhouse. “At the heart of India’s growth, startups are fueling innovation and economic transformation. India is not just a consumer of cutting-edge technology but a creator, a leader and an architect of innovation,” he said.
The positive sentiment among founders and investors looks set to carry into the next year. According to the report, close to 75 percent of Indian tech startups are optimistic about funding prospects in 2025. Furthermore, nearly 98 percent of respondents expect their revenues to grow next year, suggesting that both financial and operational outlooks are on a promising trajectory.
In addition to financial optimism, the report hints at the growing resilience and adaptability of Indian startups. The significant uptick in newly founded startups and investment activity suggests a sector that has rebounded from past funding slumps and is actively seeking long-term growth.
Experts attribute this momentum to several structural shifts. These include a supportive policy environment, improved access to global capital, and a surge in entrepreneurial talent across Tier 1 and Tier 2 cities. The growing emphasis on DeepTech and AI further strengthens India’s position as not just a technology adopter but also a front-runner in developing solutions for global markets.
This evolution also signals a maturing ecosystem where entrepreneurs are no longer focused solely on short-term gains or exit strategies. Instead, they are building companies that address complex, large-scale challenges—from fintech to healthtech, and from climate technology to enterprise software.
However, sustaining this growth will require strategic efforts from all stakeholders. Nambiar stressed the need for a collaborative approach to fortify the ecosystem. He said it would be essential to “enhance capital access” and “build robust innovation infrastructure” to maintain the upward trajectory and ensure startups are globally competitive while addressing local issues effectively.
The rise in funding for seed and early-stage startups is especially promising as it indicates a shift towards fostering innovation at the ground level. Encouraging new entrepreneurs to take the leap, coupled with strong mentorship and financial backing, could be key to producing the next generation of unicorns.
Moreover, with a significant rise in DeepTech funding, India is increasingly poised to play a vital role in emerging technologies. The continued focus on sectors like AI and advanced engineering reflects the long-term commitment to develop intellectual property and cutting-edge solutions in-house, rather than relying solely on imports or collaborations.
Looking forward, both investors and startup founders appear confident that the momentum will sustain. As long as regulatory and infrastructural support keeps pace with innovation, India is likely to continue its upward climb on the global startup leaderboard.
In conclusion, the year 2024 has marked a significant turning point for Indian tech startups. The addition of six new unicorns, a sharp increase in overall funding and deal activity, and a renewed emphasis on DeepTech innovation signal not just a recovery, but a strategic evolution of the ecosystem. As startups continue to drive technological and economic transformation, India is cementing its role as both a global innovation leader and a domestic problem-solver.