India among top 10 deep tech markets, but faces huge funding gap: Report
Dec 19, 2024
New Delhi [India], December 19 : India has emerged as one of the top ten regions in the world for funding deep technology startups However, the gap in funding between India and other leading nations remains significant, highlighted a report by Speciale Invest and Oister Global.
The report stated that while Indian startups received USD 3.4 billion in funding between 2016 and 2023, their counterparts in China secured 12 times more (USD 37.6 billion), and those in the United Kingdom received four times as much (USD 13.4 billion).
It said "Indian Deep Tech sector has been among the top 10 well-funded deep tech regions in the world The gap between Indian deep tech funding and other leading nations is humongous"
The United States leads the global deep tech funding landscape with a massive USD 177.4 billion raised during the same period.
China follows with USD 37.6 billion, while the UK, France, and Sweden secured USD 13.4 billion, USD 8.6 billion, and USD 7.8 billion, respectively. Other countries in the top 10 include Israel (USD 7.8 billion), Germany (USD 6.2 billion), Canada (USD 5.6 billion), India (USD 3.4 billion), and Japan (USD 3 billion).
While India's funding in the sector is still modest, the report noted that a growing number of startups are scaling up to higher valuations. However, the country has yet to witness large-scale exits, such as significant initial public offerings (IPOs) or acquisitions, which are crucial for building investor confidence. These exits play a pivotal role in attracting more capital and fostering innovation within the deep tech ecosystem.
The report believed it is only a matter of time before India sees big exits in the deep tech space. For this to happen, the country needs to build a robust ecosystem that supports innovation, investment, and scaling opportunities. Successful exits will not only instil confidence among investors but also set the stage for India to bridge the funding gap and compete with global leaders in the deep tech sector.
India's deep tech journey has begun on a promising note, and with the right ecosystem in place, the country could soon play a larger role on the global stage.
