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India ranked fourth globally in venture capital (VC) investments in 2022 recording $24.1 billion as tech investors worldwide continue pouring funds into the country’s tech firms despite a challenging macroeconomic climate, according to a recent report.

The report released by Dealroom and London & Partners said India follows the United States, China, and the United Kingdom, which clocked $233.3 billion, $48 billion, and $29.9 billion respectively, becoming the top three countries for tech investments globally.

According to the data findings, however, total global VC funding experienced a 33 percent dip to $485.2 billion from the record levels seen in 2021 of $723 billion — a year that saw an unprecedented surge in economic activity post the opening up of COVID-19 restrictions. The data also showed that the funding in 2022 was still 28 percent higher than the global investments in 2020 of $348.9 billion or earlier.

In a statement, Dealroom said that as per analysis, $10.7 billion of that investment to India, went into companies based in Bengaluru. With that, the Indian tech city joined the likes of London and New York in the top five global hubs for tech VC investment last year. The city accounted for five of the top 10 deals for Indian tech companies in 2022 including Byju’s funding’s $800 million, Swiggy’s $700 million, Dailyhunt’s $805 million, Polygon’s $450 million, and ShareChat’s $225 million, the report said.

In addition to Bengaluru, other global cities that saw impressive amounts of funding included the Bay Area which clocked $72.4 billion, New York which recorded $28.3 billion and Boston with $20 billion. London stood fourth and most significant in Europe, with the UK capital’s tech firms receiving a total investment of $19.8 billion.

“It is encouraging to see both Bengaluru and London among the top five cities for global tech VC investments, despite the challenges and economic instability we’ve seen in the last few years. Both these resilient cities are leading hubs for innovation, technology, and entrepreneurs,” said Hemin Bharucha, Country Director, India, London & Partners.

Back in India, following Bengaluru, Maharashtra produced two mega deals with $300 million invested into ElasticRun and Xpressbees. The companies were joined by Gurugram’s Delhivery, which also raised $300 million, making it to the top 10 deals last year.

As per the report, the leading sectors contributing to India’s strong VC funding performance were edtech, foodtech, media, fintech, and transportation.