Funding of Indian startups declined by 29 percent in March quarter

Ahmedabad: Funding for Indian startups fell 29 percent to $1.6 billion in the first quarter of calendar year 2024 compared to the same period a year earlier. According to Traxon's report, funding on a quarterly basis has decreased by 20 percent compared to $2 billion a quarter ago.

A report by market research firm Traxon says that India ranks fourth in the world after America, China and Britain in terms of funds raised in the first quarter. Investment in India has declined after increasing in three quarters of 2023. Late-stage funding declined by more than 46 percent, but early-stage funding increased by 28 percent.

Indian companies raised $1.6 billion in the first quarter. ShadowFox and CreditSaison have raised the most amount. Both companies have received funding of more than $10 million. Capillary, Rentomojo and Captain Fresh also topped the list of start-up funding.

In the first three months of 2024, the country got two new unicorns, fintech firm Peripheos and artificial intelligence giant Gifty. Despite a slowdown in funding and economic fluctuations, India's technology startup ecosystem still ranks among the top globally. Companies in the retail, fintech and enterprise applications sectors raised the most funds in the first quarter (till March 15).

Companies in the retail sector collected $49.4 million, 34 percent less than the previous quarter. Companies in the enterprise applications sector received $44.8 billion, up 48 percent from $30.2 billion the previous quarter. Fintech received $42.9 million, a 48 percent increase from $28.9 million.