Raducanu, who reached the fourth round in California last year, lost 6-3 7-5 to two-time major winner Sabalenka as she continues her comeback.
The 21-year-old, ranked 250 in the world, was a wildcard at the tournament following an injury-disrupted 2023.
“It was a good success, I would say,” Raducanu said of her week.
“I think I have handled myself a lot better on the match court. I was a lot more positive and hungry to play, and that showed I think in the tennis that I did play.”
Raducanu’s second-round victory over Dayana Yastremska, who retired with illness, was the first time the English player had recorded back-to-back wins since successfully coming through three in a row at Indian Wells 12 months ago.
The shock 2021 US Open champion made her return to the tour in January following an eight-month absence, during which she had operations on both of her wrists and surgery on her ankle.
American players like Amanda Anisimova, McCartney Kessler, and Ashlyn Krueger also receive Indian Wells wildcards.
