From founders to athletes: How India’s angel investor landscape is evolving

The top three angel investors of 2023 reduced their investments in 2024, reflecting a pullback in angel funding to Indian startups. However, angel investments from a new league – athletes – are on the rise, with sports icons increasingly participating in early-stage funding.

Former Indian cricket team captain Mahendra Singh Dhoni led with six investment rounds, followed by cricketer Ajinkya Rahane. Cricketers Sachin Tendulkar and Shikhar Dhawan backed two companies each, while cricketer Sourav Ganguly and tennis player Sania Mirza also contributed. Badminton player PV Sindhu joined the list as the newest athlete angel last year with three investments in startups.

According to Padmaja Ruparel, co-founder of the Indian Angel Network, the profile of angel investors is broadening beyond wealthy entrepreneurs.

“Younger professionals with high-paying jobs are increasingly allocating funds to this high-risk asset class. It’s remarkable to see angel investing mature into a bona fide asset class,” she told Mint.

The top angel investors of last year were Namita Thapar, executive director of Emcure Pharmaceuticals, Aman Gupta, co-founder of boAt Lifestyle, and Peyush Bansal, co-founder and CEO of Lenskart. While Thapar’s investments in Indian startups dropped to 14 from 35 and Gupta’s to 20 from 33, Bansal invested in 10 startups, down from 32 in 2023, according to data from Tracxn.

Muted sentiment

While Gupta and Thapar remained in the top three most active angel investors in 2024, the drop in funding signalled a muted investment sentiment among Indian angels across the board. Overall, angel investors participated in 506 funding rounds in Indian startups last year, down from 871 in 2023 and 2,201 funding rounds in 2022, the data showed.

Investments from individual angels and networks have more than halved over the past two years, reflecting a cautious early-stage funding sentiment in India. However, the emergence of newer leagues of investors appears set to reshape the angel landscape in 2025. Newer alternative funding sources such as micro-VCs, government-backed incubators, and venture debt players are cropping up as early-stage investors.

More than 1,000 first-time angels joined the ecosystem last year, with Indian startup founders making up the majority of the list. According to Ruparel, the rise of alternative sources of capital at very early stages caused the reduction in traditional angel rounds.

“Micro-VCs are now investing alongside angels, serving as alternative sources of capital at the same stage” and this continues to expand funding options for startups, said Ruparel.

She added that debt funding for startups is also gaining traction as a non-dilutive option, while government initiatives for incubators have introduced grant money and low-return capital. Ruparel said that “some early-stage VCs have adopted a strategy of making small initial investments and topping up funding if the startups show promise.”

Funding by other top angel investors also reduced significantly in 2024, with Cred founder Kunal Shah dropping to 13 from 22, Shaadi.com founder Anupam Mittal to 11 from 20, and Sugar founder Vineeta Singh to 14 from 21.

Snapdeal co-founder Rohit Bansal, Mamaearth co-founder Varun Alagh, and BharatPe former managing director Ashneer Grover, who invested actively in 2022, were missing from the list of top 10 investors. To be sure, the funding reflects those made by these angel investors in their individual capacity.

Oyo co-founder Ritesh Agarwal, however, significantly increased his investments to 15 in 2024 from just one in 2023. Oyo is on the path to a potential initial public offering this year and raised significant funding in pre-IPO funding rounds in 2024.

Falling funding

The number of deals by angel networks remained higher in absolute terms. We Founder Circle, a startup investor community, led the pack with 89 rounds, followed by Inflection Point Ventures with 87 rounds. Mumbai Angels and the Indian Angel Network recorded 31 and 29 rounds, respectively.

However, the number of investment rounds has cooled off and funding has fallen. Total funding decreased to $213.5 million in 2024 from $441.1 million in 2023, Tracxn data showed.

The number of total rounds has halved from 245 to 122, signalling a broader slowdown in early-stage angel investments. In 2022, angel networks recorded $536.3 million in funding across 320 rounds.