According to a data and analytics business, Indian companies raised $6.3 billion in 672 venture capital (VC) agreements between January and July, representing a nearly 43% increase in funding year over year. Furthermore, as per GlobalData, the surge comes despite a cautious global investment climate in which deal volume increased by only 1.2%, reflecting investor confidence in India's potential.

Furthermore, as per the GlobalData's Deals Database study, India recorded 664 VC deals with a disclosed capital value of $4.4 billion between January and July 2023. "Even though VC investors are cautious, there is plenty of money for promising startups," said Aurojyoti Bose, chief analyst at GlobalData.

This year's notable VC investments include rapid commerce provider Zepto's $665 million fundraising, e-commerce startup Meesho's $300 million, and online pharmacy PharmEasy's USD 216 million. According to Bose, the increase in fundraising value, despite a 1.2% increase in deal volume, can be attributable to large-scale transactions. India accounted for 7% of all VC agreements announced globally during January to July 2024, with a 4.3% share of the comparable reported financing sum.

"India, apart from being a key Asia-Pacific market for VC funding activity, standing just next to China, is also one of the top five markets globally in terms of both VC funding deal volume and value," according to Bose.

India remains a "pivotal market" for VC activity, thanks to a strong pipeline of promising businesses that continue to attract considerable financing despite global economic uncertainty. The pattern underlines India's status as a key player in the global venture ecosystem, displaying resilience and growth despite cautious investor attitude, according to Bose.