Funding in tech startups of Karnataka, Gujarat, and Tamil Nadu dropped in 2023 as per a data intelligence platform.
Tracxn Geo Annual Report revealed that Karnataka Tech startup ecosystem saw a total funding of $3.4 billion in 2023, which is a 72% plunge from the $12.2 billion raised in 2022.
On the other hand, funding in Gujarat-based tech startups fell 66% to $139 million in 2023 from $412 million in the previous year.
Kerala-based startups witness 40% surge in seed-stage funding in 2023: Report
Tamil Nadu startups also saw a crunch in funding, with an 85% plunge last year. Tamil Nadu-based tech startups secured a total funding of $255 million in 2023 as against $1.7 billion raised in 2022.
Karnataka’s tech startups attracted late-stage investments worth $2.3 billion in 2023, a 74% decline compared with $8.9 billion in 2022.
Only eight $100 million plus funding rounds were observed in this space in 2023, as against 26 and 44 such rounds in 2022 and 2021, respectively.
Edtechs have a reality check moment. Will they survive it?
As per the Tracxn report, fintech, retail, and enterprise applications were the top-funded segments in Karnataka-based startups last year.
The FinTech sector in Karnataka secured a total funding of $1.15 billion in 2023, a decline of 51% compared with $2.4 billion raised during the previous year. The Retail sector witnessed total funding of $956 million while startups in the Enterprise Applications sector attracted investments worth $928 million in 2023.
Bengaluru took the lead in terms of city-wise funding in 2023. Startups based in Bangalore raised $3.4 billion in 2023, while those based in Hubli raised $121,000.
Accel, Wellfound, and LetsVenture have been the top investors in the state to data, the report said.
Startup funding winter takes a toll on vendors
In Gujarat, Vadodara took the lead in startup funding by raising $65 million in 2023 while Surat and Ahmedabad-based startups raised $41 million and $33 million respectively.
Whereas, Chennai was the highest-funded city in Tamil Nadu, accounting for 97% of the total funds raised by tech startups in the southern state. Chennai raised $247 million in 2023, followed by those based in Coimbatore ($6 million) and Ranipet ($2 million).
Only one $100 million + funding round was seen in the Tamil Nadu tech startup ecosystem in 2023. TI Clean Mobility, a manufacturer of electric three-wheelers, raised $145 million in its Series D funding round.
RTBI, The Chennai Angels, and Chiratae Ventures have been the most active investors in Tamil Nadu to date.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates & Live Business News.
Published: 15 Feb 2024, 03:17 PM IST