Indian tech start-ups witness funding dip in Q1 2024
What's the story
Indian tech start-ups experienced a significant shift in the first quarter of 2024, accounting for 4% of the total global funding of $37 billion. However, this represented a decrease from the previous year, with funding dropping to $1.6 billion from $3.2 billion as reported by Tracxn. The report also highlighted a 48% reduction in funding rounds at 222 in the first quarter of this year, compared to 432 rounds during the same period last year.
Sector performance
Fintech start-ups lead the pack in Q1 2024
Different business models saw varying levels of success in the first quarter of 2024. KYC software start-ups led with $107 million in funding until March 15, closely followed by hyperlocal delivery apps with $100 million. However, fintech start-ups outperformed all others, securing a whopping $429 million in funding, marking a 48% increase from the previous quarter's $289 million.
Startup spotlight
Perfios and Shadowfax secure major funding
The report spotlighted two tech start-ups, Perfios and Shadowfax, each securing $100 million in Q1 funding. Additionally, two new unicorns emerged during this period—Perfios and Ola Krutrim—compared to 20 globally. The first quarter also saw an upsurge in IPO numbers with eight tech companies going public: Exicom, WTI, DocMode, Brisk, LawSikho, Medi Assist, IBL Finance, and HRHNext.
Geographical distribution
Bengaluru leads in Q1 2024 tech start-up funding
In terms of geographical distribution of funds raised during Q1 (until March 15) 2024, Bengaluru led with $752 million. Mumbai followed with $166 million, Noida with $105 million and Gurugram with $97.7 million. Delhi's tech start-ups received $96.8 million in funding, marking a significant contribution to the overall Indian tech startup ecosystem.