In a piece of gloomy news, Indian startups received $1.6 billion (Rs 1,33,31,44,00,000) during January 1 to March 15, 2024, down 29% compared to the same period last year, according to a report by market research firm Tracxn.
Funding fell 20% per cent from $2 billion (Rs 1,66,64,30,00,000) in the previous quarter. Investments in India fell after growing for three straight quarters in 2023.
The top sectors were retail, fintech and enterprise applications in terms of funding in Q1 (until March 15). Bengaluru lead in total funds raised in Q1. It was followed by Mumbai and Noida.
While late-stage funding dropped more than 46 per cent, early-stage funding increased 28 per cent. Despite the overall downward trend, India was the fourth-largest recipient of funding in the period.
The US led the charts, and was followed by China, and the UK, according to the report. Two Indian unicorns (startups valued at $1 billion (Rs 83,32,09,00,000) or more), fintech firm Perfios, and artificial intelligence company Ola Krutrim, benefited from inflows.
“Despite the funding slowdown and economic fluctuations, India’s tech startup ecosystem is still one of the top-performing tech ecosystems globally,” said Tracxn sources. They added that government initiatives and a large consumer base would most likely help investments to rise again.
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