New Avenues, New Hopes In Start-up Funding

INDIA’S START-UP ecosystem is showing signs of recovery with first half of the year (H1 2024) seeing a slight increase in funding. Companies are upbeat and stepping up hiring; and layoffs have declined 55%. Since H1 2022, countries grappled with funding winter for four consecutive half-year periods, but 2024 shows promise. Tech start-ups raised $5.1 billion in H1 2024, a 7% increase from $4.46 billion in H2 2023, turning around two years of successive decline in funding every six months.

“India’s IPO market is showing resilience,” says Anshuman Das, CEO, LONGHOUSE Consulting, a Bengaluru-based talent advisory firm. He says Zomato’s strong performance has restored faith in shares of start-ups. Recovery is also under way in other new-age stocks like PolicyBazaar and Nykaa. “Significant funding in quick commerce is giving a lot of traction. Even traditional players like Reliance and DMart are serious about this space, a net positive for the industry,” says Das.

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