After hitting a historic low in 2023, the Indian startup ecosystem has shown significant recovery signs in 2024. The total funding raised by Indian startups has grown year-on-year to $12 billion in 2024, signaling renewed investor interest and confidence in the sector.

Funding Update 

However, the undisputed startup hub of the country, Bengaluru, has witnessed a notable decline in funding. Once the leader in attracting investment, Bengaluru lost its top position to Mumbai this year. Startups based in Bengaluru saw a year-on-year funding drop of 19%, bringing the total funding down to $3.4 billion. This figure reminds us of the year 2015, because something similar was seen at that time also.

Mumbai, on the other hand, has emerged as the new leader, attracting a significant share of investments in 2024. The shift reflects changing dynamics in the Indian startup landscape, with investors exploring opportunities outside traditional hubs like Bengaluru.

Resilience Of India’s Startup Ecosystem

The overall growth in funding highlights the resilience of India’s startup ecosystem, despite global economic uncertainties and shifting investor priorities. While challenges persist, the revival indicates the sector’s potential for innovation and its ability to adapt to changing market conditions. Today, Bengaluru and Mumbai have become the number 1 cities for giving the right shape to the Indian startup ecosystem.

Mumbai Number 1

Meanwhile, Mumbai has left Bengaluru far behind in terms of startup funding. The entire credit for this goes to high profile deals like Zepto's mega funding. Startups based in the country's financial capital raised $3.7 billion in 2024.

After hitting a historic low in 2023, the Indian startup ecosystem has shown signs of significant improvement in 2024. In 2024, the India Startup Project got a huge benefit in terms of funding. This indicates renewed interest and confidence from investors in the big sector hub and this is a great news for Indian Startup Ecosystem and for year 2024.