December 30, 2024: From the rise of quick commerce to the dramatic shifts in the AI landscape, the year witnessed extraordinary investment activity, corporate shakeups, and some unforeseen twists; The Indian startup ecosystem in 2024 has been a whirlwind of breakthrough moments, innovative campaigns, and tough market realities.
Here’s a round-up of the most significant trends, numbers, and stories shaping India’s startup space in 2024.
1. Quick Commerce: The New Gold Rush
The race for quick commerce dominance has hit full throttle in India. With delivery times shrinking to under 10 minutes, Zepto, Zomato’s Blinkit, and Swiggy Instamart have transformed how Indians shop and eat. Zepto, which became one of the top-funded startups in the country, raised $1 billion in 2024, pushing its valuation to a staggering $5 billion.
Quick commerce startup Swiggy’s Bolt and Zomato’s Bistro are now driving a new era of ultra-fast food and grocery delivery, with Swiggy’s Bolt already accounting for 5% of its total orders.
Meanwhile, Myntra and Nykaa have also joined the 10-minute delivery race, launching new services like M-Now and ramping up same-day deliveries. The quick commerce gold rush is reshaping logistics, with firms like Delhivery and Shadowfax stepping in to cater to the demand for dark stores.
However, not every player could keep up. Dunzo, an early quick commerce entrant in the sector, faced severe financial troubles and had to lay off 75% of its workforce amid cash flow struggles.
2. AI Craze Fuels Tech Innovations and Investments
Artificial Intelligence is the star of 2024, with India making significant strides in the AI landscape. While the Nobel Prize for Physics was awarded to the creators of neural networks, India is increasingly focused on homegrown AI innovations. Companies like Krutrim, led by Bhavish Aggarwal, are aiming to develop India’s first AI silicon chips by 2026, with over Rs 135 crore being invested in R&D.
On the global stage, Nvidia solidified its position as a leader in GPU-accelerated computing, briefly overtaking Intel in revenue, while Databricks raised the largest venture round ever—$10 billion. In India, AI-focused companies like Zoho, which plans to open global data centres by 2030, and Avendus Capital, predicting 500 MW of data centre growth by 2028, are capitalizing on the AI boom.
3. The IPO Rush: Record-Breaking Listings
2024 was a landmark year for startups debuting on the stock market. Among the highlights:
- Awfis, the coworking space provider, delivered an IPO that set high expectations for the industry.
- Unicommerce, an e-commerce enabler, smashed its own records, marking a successful public offering.
- Mobikwik, India’s second-largest digital wallet company, soared with what was deemed India’s second-hottest tech listing ever.
In the food delivery space, Zomato received praise for its Rs 8,500-crore QIP and successfully entered the BSE Sensex, highlighting the growing investor interest in the sector.
4. EVs Take Center Stage as Ola, Ather, and MG Gear Up
The electric vehicle (EV) sector made significant strides in 2024, despite some turbulence. Ola Electric went public, but the company faced customer complaints and internal feuds that overshadowed its progress. Conversely, Ather Energy reached unicorn status, raising over $200 million and positioning itself for a stock market debut.
The government’s push for electric mobility continued, with Finance Minister Nirmala Sitharaman announcing a custom duty exemption for 25 critical metals in the Union Budget. This move is expected to support India’s growing EV ecosystem.
Meanwhile, MG Motors introduced an innovative battery-as-a-service model, aimed at reducing the high cost of EV batteries and garnering investor interest in companies like UrjaMobility and Inventus.
5. Paytm Faces Regulatory Roadblocks, Fintech Sector Booms
The fintech sector, despite some regulatory turbulence, continues to thrive. The Reserve Bank of India (RBI) had its hands full in 2024, enforcing stricter due diligence on fintech companies. Paytm, India’s leading digital wallet company, faced a setback when the RBI barred Paytm Payments Bank from accepting deposits, but it later recovered and posted its first profitable quarter in Q2 2024.
Meanwhile, Razorpay saw explosive growth, quintupleting its net profit, and PayU reported strong revenue gains. Amazon Pay India also posted a 39% reduction in losses, underlining the continued dominance of fintech in India.
6. EdTech Struggles and New Trends in Learning
BYJU’s, once India’s edtech giant, dominated the headlines for much of the year, but not for the right reasons. Struggling with employee layoffs, financial mismanagement, and court cases, BYJU’s had to scale back its operations, while competitors like Unacademy also resorted to multiple rounds of layoffs. However, some companies thrived—upGrad saw a 50% increase in enrollments, and Cuemath reduced its losses by 40% in FY24, focusing on a sustainable business model.
The Indian government also made strides in addressing the skills gap by launching a nationwide vocational training initiative to help 1 crore youths.
7. Corporate Shakeups: Adani, Tata, and Losses in Industry
2024 was a year of corporate turbulence, especially for Gautam Adani and his empire. Allegations from Hindenburg Research and a US court indictment added significant pressure on Adani Group stocks. Meanwhile, Ratan Tata, an iconic industrialist, left behind a legacy of philanthropy, and the business world also mourned the loss of Shashi Ruia and N Vaghul, who left indelible marks on India’s infrastructure and banking sectors.
8. Crypto Woes: WazirX Heist and Regulatory Pressure
While Bitcoin reached new highs in anticipation of US political shifts, Indian crypto exchanges faced a rocky year. The WazirX heist, valued at $234 million, shook investor confidence, while CoinSwitch had to use funds from its treasury to make up for the losses. India’s crypto exchanges, caught between rising regulatory pressure and market volatility, will need to recalibrate in the coming year.
9. Space and Drones: New Frontiers for Investment
Indian startups in the space tech and drone sectors are taking off. Pixxel, a space-based data analytics company, secured a NASA contract for Earth observation, while Agnikul Cosmos made history with the world’s first 3D-printed rocket engine launch. Meanwhile, Delhivery took its first steps into the drone space, positioning itself as a leader in freight air transportation.
2024 a Year of Indian Startups : Innovation and Growing Pains
2024 has been a year of bold moves, high stakes, and the relentless pace of innovation. While many sectors, from quick commerce to AI, saw explosive growth, others, like edtech and crypto, have struggled to find their footing. As the Indian startup ecosystem continues to evolve, the next few years will determine whether these innovations can stand the test of time.
