Indian startups hit a new high in May, raising over $1.34 billion, making it the biggest funding month of 2024. A report from Kredible, a startup intelligence platform, revealed that 128 deals contributed to this milestone. Among them, 39 deals at later growth stages raised a whopping $1.19 billion, while 66 early-stage deals amounted to $154 million. Additionally, there were 23 undisclosed rounds, mostly early-stage deals, boosting the overall funding.
The surge was fueled by major deals like Google and Flipkart‘s $350 million partnership and several others exceeding $100 million. Perfios, a new unicorn startup, also joined the elite club during this period.
Compared to April, May saw a nearly 29% increase in funding. This growth was even more impressive, up 32% from May 2023. Since the start of the year, Indian startups have secured over $5.1 billion, on track to potentially reach $12 billion by year-end, compared to the $11.3 billion total funding in 2023.
In terms of standout early-stage deals, agritech startup Superplum secured the top spot with $15 million in Series A funding, followed by UnifyApps with $11 million in seed funding. Other notable names included Soleos Solar Energy, Vegapay, Turno, DiFacto, Celcius Logistics, Flam, CoverSure, and Fyllo.
Geographically, Bengaluru led the way with 52 deals, contributing 60% of the overall funding in May, followed by Delhi-NCR with 33 deals and Mumbai with 14 deals.
E-commerce and fintech dominated the sectors with 25 and 20 deals, respectively. Notable among them was the acquisition of Device42 by Foxworks in a $230 million deal. May also witnessed eight mergers and acquisitions, showing the dynamism of the startup ecosystem.
Moreover, May saw a decline in layoffs compared to previous months. However, top-level departures continued, with CEOs of Freshworks and Caasha stepping down.
Despite challenges, Kredible sees May’s funding surge as a positive sign for the market’s future. With investor interest expected to pick up after elections, the Indian startup ecosystem looks set for further growth in the coming months.
