Indian tech startup funding witnessed a decline of 51% in Q1 2024 (until 15th March) with $1.6 billion raised from $3.2 billion during the same period last year, noted Tracxn’s geo quarterly India tech report.
India received fourth-highest funding, globally, while U.S. bagged the top spot with $19.5 billion, followed by China ($2.8 billion) and U.K. ($2.5 billion).
Out of $1.6 billion, Shadowfax and Credit Saison received the highest funding of over $100 million. Capillary, Rentomojo, and Captain Fresh were also among the top funded companies.
The late-stage funding seen a 46% drop, while the early-stage funding witnessed an increase of 28%.
(For top technology news of the day, subscribe to our tech newsletter Today’s Cache)
Bengaluru received most of the funding with $752 million followed by Mumbai ($166 million) and Noida ($105 million). Gurugram got $97.7 million while Delhi bagged $96.8 million.
Perfios and Ola Krutrim were the two new unicorns in this period in India while globally it was 20.
Eight tech companies went public including MediaAssist, WTI, Exicom, and LawSikho.
Retail, fintech, and enterprise applications were the top-performing sectors, the report highlights.
The retail sector received funding of $494 million, which was a decline of 34% compared to the previous quarter.
Enterprise applications got $448 million, a growth of 48% compared to $302 million received in the previous quarter.
Fintech received $429 million, a 48% growth from the last quarter’s $289 million. The investment in the fintech sector is propelled by the rapid growth seen in smartphone penetration driving the cashless economy, the report said.
Overall, there were 20 acquisitions during the quarter, a 33% decrease from last quarter and a 55% drop compared to 45 acquisitions in Q1 2023.
