India’s venture capital (VC) ecosystem clocked a robust growth in 2024, with funding surging 43 per cent year-on-year to $13.7 billion, according to a report.

This recovery was fuelled by a 45 per cent rise in deal activity, with 1,270 transactions recorded, reinforcing India’s position as the second largest market for venture capital and growth funding in the Asia-Pacific region, the report by Bain & Company and IVCA said.

“Small and medium ticket deals (< $50 million), which made up around 95 per cent of the deals, increased by 1.4 times, whereas $50 million+ deals nearly doubled, rebounding to pre-pandemic levels as high-quality assets attracted deployments. Megadeals ($100 million+) also rebounded with 1.6 times increase in volumes as investors backed high-quality companies that successfully weathered the two-year funding winter,” it said.

The report noted that the consumer technology, software and SaaS (including generative AI), and fintech sectors attracted over 60 per cent of the total funding. Consumer technology emerged as the frontrunner, securing $5.4 billion in funding, more than doubling compared with 2023.

“The sharp growth was driven by significant investments in quick commerce, edtech, and B2C commerce, with companies such as Zepto ($1.4 billion funding in 2024), Meesho ($275 million), and Lenskart ($200 million) securing major funding rounds,” the report said.