New-age startups logged a total funding value of about USD 563.5 million in April 2024, up 21% from the same month a year ago.

Funding rounds within growth and late-stage Indian startups more than doubled in April from the year-ago month, as venture capital and private equity investments across new-age tech companies showed signs of recovery.

The Indian startup ecosystem recorded 10 late-stage funding deals in April, over four deals in the year-ago period, data from analytics firm Venture Intelligence showed. The amount of funding in the stage also almost quadrupled to USD 410 million from USD 109 million in April last year.

In addition, growth-stage deals that plummeted over the last year have also flourished in April. In 19 deals, startups raised USD 159 million in private equity and venture capital funding in April, compared to USD 62 million in eight deals in the same month of 2023.

Seed and growth-stage startups registered a YoY increase in funding in April after a marginal decline last month. Seed-stage startups netted USD 178 Million across 46 deals last month, a 286% increase from USD 46 Million raised a year ago across 25 deals.

This comes after the ecosystem witnessed intermittent improvements in funding announcements across stages in the first three months of 2024. While January recorded high early-stage deals, February saw an uptick in funding across the stages. In March, however, the funding sentiments remained muted despite a slight uptick in the late stages.

In April, Indian startups recorded USD 726 million in 68 deals, from USD 298 million in 43 deals in April of 2023 - a spike of about 144%.

Not to miss, the total size of investment in the early stages has also recorded a slight but noticeable boom with pre-seed and seed-stage startups attracting USD 157 million from USD 127 million in April 2023.

Investors like Blume Ventures, Fireside Ventures, Singularity AMC and Anicut Capital dominated the most active backer charts this month, closely followed by Matrix Partners India, Peak XV Partners and Accel India.

Several startups have emerged as noteworthy for their traction with the funding community. In the logistics sector, Matchlog Solutions raised USD 1.5 million during its pre-Series A funding round. Similarly, from the healthtech sector, Endimension Technology secured USD 720,000.

Startups headquartered in Bengaluru continued to be the darling of investors, cumulatively bagging USD 432 Million across 28 deals in April. Delhi NCR retained its second position with funding of USD 135 Million.

Meanwhile, Chennai knocked off Mumbai from the third spot, with startups based in the Tamil Nadu capital bagging USD 87 Million last month. In comparison, startups in Mumbai secured USD 66 Million last month.

During the first three months of 2024, Mumbai was the third-highest-funded startup hub. Startups in the financial capital of the country raised USD 351 Million across 42 deals in Q1. Bengaluru was at the top spot with USD 853 Million in funding across 63 deals, while Delhi NCR startups netted USD 441 Million across 48 deals in the March quarter.

Article Sources – MoneyControl, Inc42