Funding of Indian startup companies decreased by 29 percent – StartUp News

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Funding for Indian startup companies declined by 29 percent to $1.6 billion in the first quarter of calendar year 2024 compared to the same period a year ago. This information has been received from Traxon’s report. On a sequential basis, funding has declined by 20 percent compared to $2 billion a quarter ago.

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

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Indian companies have raised $1.6 billion in the first quarter. ShadowFox and Credit Saison have raised the most amount. Both the companies together have raised more than $100 million. Capillary, Rentomojo and Captain Fresh are other startups that have topped in securing funding.

Two new unicorns have been created in the first quarter. Startup companies whose valuation exceeds $1 billion are called unicorns. Among the companies that became unicorns in the first quarter are fintech firm Perifios and artificial intelligence (AI) specialist Pratishik.

Neha Singh, Co-Founder, Traxon, said, ‘Despite the slowdown in funding and economic fluctuations, India’s technology startup ecosystem is still one of the top performing technology ecosystems worldwide. Even though there is a recession this quarter, we are hopeful that we will bounce back quickly due to the government’s initiatives and being a country with the world’s largest youth population.

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India’s strong technology ecosystem and demographic advantage promise a bright future and further strengthen its position as a global tech giant.’ In the first quarter (till March 15), companies in the retail, fintech and enterprise applications sectors raised the maximum amount.

Retail sector companies raised $494 million, which is 34 percent less than the previous quarter. Companies in the enterprise applications sector received $448 million. This is 48 percent more than last quarter’s $302 million. Fintech received $429 million, which is 48 percent more than $289 million in the previous quarter.

First Published – March 26, 2024 | 9:58 PM IST

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