Indian start-ups likely to secure $8-12B funding in 2024
Rajan Anandan, the managing director of venture capital firm Peak XV, anticipates that Indian start-ups are on track to garner between $8 and $12 billion in funding this year. Speaking at the StartUp Mahakumbh event, Anandan emphasized that India's start-up ecosystem is globally acknowledged for its dynamism. He also disclosed that around $20 billion of private capital is currently unallocated but reserved for investment in private firms and start-ups within the country.
Recent years witness significant growth in investment trends
Anandan highlighted the investment trends in Indian start-ups, revealing that the annual investment run rate before 2021 and 2022 was roughly $8-10 billion. A notable upswing was observed with investments soaring to a combined total of $60 billion for 2021 and 2022. "Last year, it was $7 billion, which people said is low. It could have been zero because basically six years of funding came in two years. This year we are well on track to $8-10 or 12 billion."
Positive funding outlook for Indian start-ups
Anandan expressed confidence in the future funding prospects for Indian start-ups. The venture capitalist asserted that an annual funding of $10 billion, or approximately Rs. 80,000 crore is adequate to bolster the Indian start-up ecosystem. He foresees a consistent inflow of $10-12 billion in investments which will sustain over the forthcoming years. Anandan also pointed to a shift in US funding focus toward AI and next-generation software entities, reinforcing India's standing as a dynamic start-up ecosystem.
100 Indian start-ups will go public by 2032
Anandan underscored that 20 Indian start-ups are currently publicly traded. Looking forward, he anticipates a substantial rise in this number. "We think that over the next 7-8 years, there will be 100 start-ups that will go public." This projection signifies a bright future for Indian start-ups, not only in terms of funding but also their visibility on public trading platforms.