Quick Commerce Leads India’s US$13.7 Billion Venture Capital Resurgence in 2024

India’s venture capital landscape experienced a strong resurgence in 2024, signaling renewed investor confidence and a revitalized startup ecosystem. Venture funding surged to US$13.7 billion—marking a 1.4-times jump from 2023—driven by robust economic indicators, regulatory reforms, and a thriving technology sector. As global investors continue to prioritize India as a key growth market, this sets the stage for stronger deal activity in 2025.

India’s venture capital (VC) landscape witnessed a major resurgence in 2024, with total investments rising to US$13.7 billion—representing 1.4 times increase from the US$9.6 billion raised in 2023, according to the “Venture Capital Report 2025“, published by Bain & Company, a global management consulting firm, and the Indian Venture and Alternate Capital Association (IVCA). This growth signals a renewed wave of investor confidence, spurred by positive domestic economic indicators, progressive regulatory reforms, and a more vibrant public market.

Although the early months of 2025 began on a relatively slower note, experts at the consultancy firm emphasized that overall investor sentiment remains strong, with expectations of a robust deal-making year ahead. India continues to be seen as a high-priority investment destination by global investors seeking opportunities in fast-growth markets.

Technology-led growth and sectoral shifts for investors

India’s technology ecosystem continues to thrive, with technology-driven segments such as consumer technology, software and SaaS, and fintech emerging as the primary focus areas for investors. These segments accounted for more than 60 percent of the total VC funding in 2024. The report notes that among these, consumer technology stood out, with funding increasing 2.3 times to US$5.4 billion. This surge was largely attributed to major deals in sub-sectors like business-to-consumer (B2C) commerce, travel technology, ed-tech, and gaming.

A noticeable shift in India’s investment environment reflects a greater emphasis on business sustainability, profitability, innovation, and regulatory compliance. Through the report analysis, Bain & Company believes India’s latest policy reforms have also supported the funding resurgence, as investors prefer ventures with strong unit economics and resilience against global macroeconomic fluctuations.

Quick commerce defining VC trend in India

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A notable development in India’s VC trends in 2024 was the rise of quick commerce within the B2C commerce segment. Rapid consumer adoption, improved business strategies, and clearer profitability pathways have positioned quick commerce as an increasingly attractive investment model. The Bain report notes the top 10 funded companies made up nearly one-fourth of total VC investments, with nine of them operating in consumer markets, underscoring the sector’s continued dominance.

Industry leaders project aggressive expansion in quick commerce, with dark store networks expected to grow to 5,500 by the end of 2025.  Moreover, the expansion of non-grocery categories is adding further momentum to this segment’s growth.

READ: Quick Commerce Market in India and Key Players

Leading VC capital deals in 2024

Among the most prominent companies that attracted sizable VC funding in 2024 were Zepto, Meesho, Rebel Foods, Rapido, PharmEasy, Physics Wallah, Lenskart, Purplle, Mintifi, and Oyo. Quick-commerce company Zepto emerged as the top recipient with US$1.4 billion in funding and a valuation of US$5 billion.

Source: Bain & Company; PitchBook; Venture Intelligence; AVCJ; VCCEdge

*Total funding over different rounds in 2024.

Trends in deal values and funding stages

The average deal value remained largely stable across stages. Seed-stage deals grew from 628 in 2023 to 756 in 2024, with average funding rising from US$1.3 million to US$1.6 million.

Deal activity in the country rose across various investment sizes and stages in 2024, with the average deal size remaining consistent. Smaller and mid-sized deals (under US$50 million) grew by approximately 1.4 times, while larger deals (over US$50 million) nearly doubled, returning to pre-COVID levels. The number of megadeals (above US$100 million) also climbed by 1.6 times, indicating a renewed willingness to support robust, high-performing companies that endured the funding slowdown of previous years.

Source: Bain & Company; PitchBook

Emerging investment priorities in India

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Investment activity in 2024 continued to be dominated by consumer technology, software and SaaS, and fintech, which together accounted for approximately 62 percent of total funding. However, the share of consumer tech rose sharply—from around 25 percent in 2023 to nearly 40 percent—while fintech’s share declined from 20 percent to about 10 percent.

Consumer technology experienced a funding boom, growing to US$5.4 billion with a 2.3 times year-on-year increase. This was largely due to the rise in large-ticket investments, with megadeals in the sector growing from four in 2023 to sixteen in 2024.

Software and SaaS saw steady growth, reaching US$1.7 billion in 2024—an increase of 1.2 times. The segment benefited from rising enterprise demand, global go-to-market strategies, and the emergence of mature, scalable assets.

Traditional sectors such as the BFSI (banking, financial services, and insurance) grew 3.5 times to US$1.1 billion, supported by investments in non-banking financial services and green finance initiatives. The consumer and retail sector also surged to approximately US$900 million—2.2 times the 2023 figure—driven by rising consumer spending and scalable, asset-light models in food, beverages, and fashion.

Transformation in the startup ecosystem and outlook beyond 2025

India’s startup ecosystem is undergoing substantial transformation, driven by shifting investment priorities, evolving business models, and supportive regulatory changes. VC firms are now increasingly focusing on India’s conventional sectors like BFSI and consumer/retail, surpassing deal volumes in the formerly dominant consumer tech and SaaS segments.

Regulatory reforms have played a pivotal role in enhancing India’s investment climate. The removal of the angel tax, reduction in long-term capital gains (LTCG) tax, and streamlined regulations under the Foreign Venture Capital Investor (FVCI) and Foreign Exchange Management Act (FEMA) frameworks have collectively bolstered investor confidence and facilitated smoother capital inflows.

There has also been a growing trend of re-domiciling startups back to India. Companies like Pine Labs, Razorpay, Meesho, and Zepto are shifting their headquarters to India, driven by a robust IPO market and investor-friendly policies such as the removal of NCLT approval requirements for re-domiciling.

India’s regulatory landscape impact on startup ecosystem

The regulatory environment in 2024 proved largely favorable for startups and investors alike. The removal of the angel tax considerably eased compliance for early-stage startups, boosting domestic investor participation. The reduction in LTCG tax on unlisted equity enhanced post-tax returns for limited partners, making venture investments more attractive.

In September 2024, the re-domiciling process for startups was significantly streamlined with the removal of approval requirements from the National Company Law Tribunal (NCLT), a quasi-judicial body in India. The introduction of the Companies (Compromises, Arrangements and Amalgamations) Amendment Rules, 2024 (also known as the Merger Rules, 2024), further accelerated this process—reducing the timeline from 12–18 months to just 3–4 months. Additionally, the Foreign Venture Capital Investor (FVCI) registration process was simplified, as the Securities and Exchange Board of India (SEBI) delegated the responsibility to Designated Depository Participants, thereby facilitating smoother foreign capital inflows.

Recent amendments to the Foreign Exchange Management Act (FEMA) have streamlined cross-border investment processes, easing procedures such as foreign currency account setups and Foreign Portfolio Investment (FPI) regulations. On August 16, 2024, India’s Union Ministry of Finance introduced the fourth amendment to the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, aiming to boost foreign investment—particularly in the startup ecosystem. As part of this reform, the startup eligibility period was extended from five to ten years, further incentivizing international participation and enhancing investor confidence.

However, regulatory tightening in specific areas also emerged. The Reserve Bank of India (RBI) introduced stricter compliance norms for payment aggregators, mandating merchant verification and advanced due diligence measures.

Conclusion

Despite these regulatory challenges, India’s venture capital and startup ecosystem remains dynamic and promising, with structural shifts setting the stage for long-term sustainable growth.

Looking ahead, India’s startup landscape appears well-positioned for sustained momentum in 2025 and beyond. Core sectors such as consumer-focused businesses, software and SaaS, and artificial intelligence will remain key areas of interest, while emerging domains like semiconductors, deep tech, and energy transition are gaining attention. India’s central government-led initiatives in space-tech and sector-specific fund allocations are expected to further catalyze growth. 

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