Indian tech start-up funding saw a downturn in the first quarter of 2024, marking a 51 per cent decline from the same period last year, a report has revealed.
According to Tracxn's geo quarterly India tech report, until March 15, start-ups in India raised $1.6 billion compared to $3.2 billion in the previous year's Q1.
Despite the decline, India still secured the fourth-highest funding globally. The United States led the pack with a staggering $19.5 billion, followed by China with $2.8 billion, and the United Kingdom with $2.5 billion.
Out of the $1.6 billion raised in India, Shadowfax and Credit Saison secured the highest funding, each receiving over $100 million. Companies like Capillary, Rentomojo, and Captain Fresh were also among the top recipients of funding.
Bengaluru secured the most share of funding with $752 million, followed by Mumbai with $166 million and Noida with $105 million. Gurugram received $97.7 million, while Delhi obtained $96.8 million in funding.
During this period, Perfios and Ola Krutrim emerged as the two new unicorns in India, while globally, there were 20. Eight tech companies, including MediaAssist, WTI, Exicom, and LawSikho, went public.
According to the report, fintech, and enterprise applications sectors performed better than other sectors.
Enterprise applications received $448 million, experiencing a notable 48 per cent growth from the previous quarter's $302 million.
Fintech saw a significant increase, receiving $429 million, a growth of 48 per cent from the previous quarter's $289 million.
The retail sector received $494 million in funding, marking a 34 per cent decline compared to the previous quarter.
The report attributed the investment surge in the fintech sector to the rapid growth of smartphone penetration, which is driving the cashless economy.
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