Desi deeptech funding up 78% in 2024: Report

Bengaluru: India’s Dipatake Ecosystem – AI, Spacetech, Advanced Manufacturing and Semcover Designs include startups – which added more than 480 new inserts in 2023 twice in the previous year. The cumulative base is now close to 4,000.
In 2024, the region experienced a remarkable increase in funding, with an increase of 78% compared to the previous year. A report by Nasscom and Zinnov states that the expansion of the region was fuel by innovations of successful Govt policies, rapid progress in generative AI and success in innovations from emerging companies.
The report stated that in 2024, the Total Dippatak Funding in the top 10 Dippatch Startup Funding Round was accounted for by about $ 600 million, which was $ 1.6 billion. Out of these top 10, but all were the AI-operated software platforms solving for cases of different use.
These deptack startups not only attracted more funding, but commanded the confidence of high investors, in which the average ticket sizes had to match or cross traditional technical startups.
Nevertheless, founders and investors have warned that India reduces this speed until the ecosystem does not mature beyond the support of the initial stage and creates strong demands, capital continuity and meaningful exit routes.
Bangalore-based startup, Cofounder of Atherial Machines, Kaushik Mudada said, “The best way to ensure Rs 10,000 crore reaches the right builders, the right venture with the capital funds that have a good track record,” that makes CNC machines important for accurate manufacturing. “Most funds or venture capitalists try to rely on either market reports and studies or Western models, who have worked to make investment decisions rather than spending time in understanding the underlying technologies.,
Mudada sees the current push of the government as a “real policy axis”, indicating long -term national ambition. But Dipatake startups face a fundamental challenge – revenue often comes after years of R&D, and capital needs are loaded in front. “We have been successful due to being very frugal,” said Mudada. “Now I have a lot of startups, which have the advantage of raising large rounds in Dippatak, I hope that funds are used wisely before revenue kick.,
Some founders argue that the major bottleneck lies in the depth of the domestic market. Saurabh Chandra, founder of ATI Motors, a startup building of autonomous industrial vehicles, said that domestic market shortage also increases capital requirements for startups as global markets are the only viable options. “This is the path we have also taken,” he said.