Indian tech startup ecosystem witnessed ‘measured recovery’ after a prolonged funding winter: Nasscom

Nasscom and Zinnov report shows Indian tech startup ecosystem's strong recovery in 2024 with increased funding and innovation.

The Indian tech startup ecosystem witnessed a ‘measured recovery’ after a prolonged funding winter, reported industry apex body, Nasscom, on Thursday (April 3, 2025) in a research done in collaboration with Zinnov, a business management consultant.

‘’The Indian tech startup ecosystem demonstrated resilient progress in CY2024, reflecting a year of measured recovery characterized by selective investor participation, steady funding momentum, and sustained entrepreneurial activity,’‘ said a joint report titled, ‘Road to Recovery – Indian Tech Start-up Landscape 2024.

For instance, during calendar 2024, the country’s tech startup ecosystem witnessed a 23% surge in funding, with total tech funding rising to $7.4 billion. The number of deals also saw a 27% uptick compared to CY2023. This revival was further underscored by a 2.1X increase in newly founded tech startups during the year, bringing the total number of Indian tech startups to an estimated 32,000–35,000, indicated data released by Nasscom.

According to the report, some 67% of tech startup funding in CY2024 was focused on ‘matured’ sectors that are characterised by a high aggregate funding value and deal share. Amongst all ‘matured’ sectors Retail Tech, and Health Tech emerged as frontrunners exceeding their 5-year performance averages. Nascent sectors including Aviation, Maritime and Defense, and Environment Tech displayed continuous momentum in deal activity, reflecting growing investor interest in emerging technology domains.

In terms of funding attracted by DeepTech firms, the report said, funding in the sector grew by 78% in the calendar reaching $1.6 billion. Compared to CY2023, the number of deals in DeepTech startups increased by 24% in CY 2024. Median deal sizes in DeepTech startups outgrew tech startups in CY2024 for all the funding stages. Late-stage DeepTech startups saw the highest growth of 2.7X in median deal sizes as compared to CY 2023.

Rajesh Nambiar, President, Nasscom, said, “The growth across mature and emerging sectors, specifically in DeepTech and AI, outlines the Indian tech startup ecosystem’s growing maturity, evolving from being just a hub of opportunities to becoming a strategic force driving India’s digital economy.’‘

DeepTech startups have been playing an increasingly crucial role in shaping the country’s innovation landscape. ‘‘Our focus now must be on strengthening the foundational pillars of this growth, from enhancing capital access to building robust innovation infrastructure, ensuring our startups can compete globally while solving uniquely Indian challenges,’‘ Mr. Nambiar added.