look news india
New Delhi: Funding in domestic tech startups fell 13 per cent to $4.1 billion during the first half of the current calendar year (January-June). Companies raised $4.8 billion in the same period of 2023. In such a situation, investors are moving away from tech startups. The number of funding rounds saw a decline of 54 per cent during the period of 989 in the first half of last year.
The decline in funding in the tech startup sector was gradual. Seed-stage funding declined 17.3% year-on-year in the first half of this year, funding to early-stage startups fell 28% and funding to late-stage companies fell by just 1.3%. Despite four consecutive half-yearly funding declines since the first half of 2022, we are now seeing signs of stabilisation, the report said.
However, the funding scenario has improved in the first half of this year, compared to the second half of 2023. Total funding grew by 4% from $3.96 billion in the second half of last year, while across all stages, funding also increased.
The first half of 2024 saw the highest monthly funding at $862 million in April, while January last year saw the highest first half funding at $1.41 billion. There have been eight funding deals worth more than $100 million so far this year.
Companies like Flipkart, Apollo 24×7 and Meesho raised over $250 million in funding during this period. Flipkart raised the highest amount at $350 million, followed by Apollo 24×7 at $297 million and Meesho at $275 million.
Startups in the retail, enterprise applications and fintech industries recorded the highest funding during this period. Three startups – Zepto, InCred Finance and Porter – became unicorns among Indian startups in the first half of this year.
The top investors in the first half of this year were Accel, Blume Ventures, and Peak Tough Partners. Overall, Southeast Asian startups saw a modest increase in funding in the first half of this year, following a decline in funding in four consecutive half-year periods since the first half of 2022.
Funding could show signs of improvement later this year, as several startups are in talks to raise large funds, including Zepto, which is finalizing a $650 million round.
downward trend
, 13 percent cut in funding
, 45 percent reduction in funding rounds
, 28 percent decline in Series A+ rounds
, For the first time, funding was cut by 48%
, 44 percent reduction in acquisitions