Worrying? Funding in late-stage deeptech start-ups decline 69% in 2024

BENGALURU: Though the country’s start-up ecosystem is also focusing on deeptech (more into innovation), the overall funding in the late-stage has come down drastically in the last few years. According to data sourced by market intelligence firm Tracxn, late-stage funding saw a decline of 69% from $166 million in 2023 to $52 million in 2024. In 2022, the total funding stood at $1.8 billion.

Last week, Commerce Minister Piyush Goyal urged start-ups to focus more on innovation. He had pointed out that many start-ups are focusing on food delivery, whereas, Chinese start-ups are working on EVs, semiconductors and AI.

The country has over 3,600 deeptech start-ups. Though late-stage funding in deeptech start-ups has declined, seed stage funding stood at $291.9 million in 2024 compared to $218.6 million in 2023. Early-stage funding also witnessed a slight increase at $652.7 million in 2024 compared to $651.4 million in the previous year.

Narendra Bhandari, General Partner, Seafund said there is a need for start-ups in India which are focussed at making us self-reliant in key sectors like semiconductors, energy, robotics and transport, among others. “The opportunity and talent in India are immense. The spotlight on deep tech start-ups is critical,” he said.