According to new figures from data intelligence platform Tracxn, Indian startups have raised 32% less funding in 2024 compared to last year, signaling that investors are being more selective when making deals.

The number of startup funding rounds fell to 1,448 compared to 2,114 last year, but overall funding rose 6% to $11.3 billion. The disparity here shows that investors do not hesitate to open their checkbooks whenever they want.

Early-stage investment activity reflected a broader trend; The number of Series A and Series B deals fell to 387 from 420 the previous year, but total capital invested remained steady at $3.16 billion. But fewer startups managed to raise startup funding this year; While transactions decreased from 1,545 to 925, financing decreased by 22% to $970 million.

Late-stage financing has underlined the market's interest in larger deals; startups have raised 136 Series C and later rounds this year for a total of $7.13 billion; a 12% increase in capital despite lower volume. Startups have raised 20 rounds valued at more than $100 million in 2024, compared to 18 such rounds in 2023.

Public markets have emerged as a bright spot, with more than 40 startups completing their IPOs; This is an 80% increase from 2023. Swiggy's $1.35 billion listing last month was among the best this year. The world's largest technology IPO.

A. Pipeline of more than 20 startupsIt is set to go public in 2025, including flash trading group Zepto and business-to-business marketplace Infra.Market.

A number of early-stage startup deals are also in the works, sources tell me; Swish commerce startup Swish is in talks to raise about $15 million; Premji Invest is in talks to back Digitap; Spotdraft is trying to raise a debt round; WhistleDrive is in talks to secure approximately $11 million; Vodex.ai is in advanced stages of negotiations to secure approximately $10 million to $15 million; and 91squarefeet, Galaxeye.space, R for Rabbit and Biryani by Kilo are in advanced negotiations to close new rounds.