Indian Startup Ecosystem: IPOs, Venture Capital & Deeptech

The Indian startup ecosystem thrived in 2024 with record-breaking IPOs, surging venture capital investments, growing technology startups, innovative deeptech developments, and the pivotal role of family offices driving growth.

According to Bloomberg data, startups attracted $16.11 billion in venture funding from January to November, while 13 companies went public, raising a cumulative INR 29,247 crore. Swiggy’s $1.35 billion IPO stood out as the year’s highlight.

Indian startups achieved unprecedented success in the public market, with IPOs becoming the preferred exit strategy for venture capitalists. The 13 IPOs included Swiggy, Ola Electric, and Digit Insurance. Swiggy’s IPO alone accounted for INR 11,327 crore, followed by Ola Electric at INR 6,145 crore. Additionally, TAC Security delivered the highest listing gain at 173.58 percent.

Venture capitalists reaped significant rewards, earning over $4 billion through IPOs and public market sales, double the returns from 2023. Notable exits included Peak XV Partners and Elevation Capital’s withdrawal from Ixigo through pre-IPO secondary sales and IPOs. Over $5 billion was generated through secondary transactions, IPOs, and block deals.

Indian Startup Ecosystem Driven by Technology and Deeptech

Technology startups led the funding race, raising $6.5 billion, a 52.5 percent increase from 2023. The tech ecosystem saw six new unicorns emerge, doubling the count from the previous year. A surge in artificial intelligence (AI) and deeptech investments further bolstered growth. Prominent voices, including Kalaari Capital and G20 Sherpa Amitabh Kant, highlighted deeptech’s potential to transform India’s economic trajectory.

The trend of “reverse flipping,” where Indian-founded, overseas-based startups relocate to India, gained momentum. Companies like Groww and PhonePe moved headquarters back to India, aiming to leverage domestic and global capital markets. Razorpay, set to go public in 2026, has also begun this transition.

A Defining Year for Electric Mobility

2024 was a defining year for electric mobility in India, marked by a surge in EV sales, significant advancements in battery swapping technology, and a notable expansion of electric commercial mobility, including greener last-mile delivery solutions.

The adoption of EVs in Tier 2 and 3 cities accelerated, driven by the strengthening of charging and swapping infrastructure, alongside strong government support. Battery swapping, mainly for two- and three-wheelers, emerged as a key solution for affordable and efficient urban mobility.

Looking ahead to 2025, the EV landscape is poised for even more significant advancements. Innovations in solid-state and lithium-ion batteries will enhance both efficiency and affordability, making electric vehicles more accessible than ever.

“The growth of domestic manufacturing will be crucial in scaling production to meet rising demand. At the same time, expanding swapping networks will bridge gaps in underserved areas, accelerating the transition to electric mobility nationwide. With a focus on innovation, collaboration, and sustainability, 2025 promises to be a pivotal year in shaping the future of transportation,” said Pulkit Khurana, Co-Founder of Battery Smart.

A Promising 2025 Ahead

The upcoming year looks even brighter, with 25 startups, including Meesho, Bluestone, and Pine Labs, preparing for IPOs. Venture capital investments are expected to shift focus toward early-stage startups. Late-stage funding dominated in 2024, reaching $7.13 billion compared to $3.16 billion for early-stage ventures. However, early-stage funding is poised for growth in 2025.

Sharad Bansal, managing partner at Warmup Ventures, predicts increased early-stage activity is driven by domestic family office capital. Navin Honagudi of Elev8 Venture Partners foresees a rise in startup IPOs and secondary market transactions, emphasizing long-term value creation.

Alternative financing options like venture debt and asset financing are gaining traction, especially for deeptech startups. Family offices, increasingly active in startup investments, play a pivotal role by aligning wealth management with strategic growth opportunities. Rajmohan Krishnan of Entrust Family Office underscores their importance in navigating evolving funding landscapes.

Despite optimism, startups may face challenges from evolving US policies, geopolitical tensions, and inflationary pressures. Yet, leveraging innovation and sustainability can ensure resilience and sustained growth.

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