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Business News/ Companies / Start-ups/  Fintech startup funding up by 48% in Q1 2024; raising $429 million between January-March 15: Report
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Fintech startup funding up by 48% in Q1 2024; raising $429 million between January-March 15: Report

Only two tech startups received $100 million of funding Q1 2024-Perfios and Shadowfax. The quarter saw the emergence of two new unicorns—Perfios and Ola Krutrim as compared to 20 globally

Funding to Indian tech startups was 4% of the total global funding ($37 billion) in the first quarter of 2024Premium
Funding to Indian tech startups was 4% of the total global funding ($37 billion) in the first quarter of 2024

Funding winter in India's tech startup ecosystem persisted between January- March 15 this year, with only $1.6 billion injected--a 51% decline, according to Tracxn report. The tech startups received $3.2 billion of funding in the same period last year.

The data intelligence platform, tracking startups and private firms observed a 48% reduction in funding rounds at 222 in the first quarter of the current calendar year. Last year, 432 rounds of funding took place in the same period.

The funding to Indian tech startups was 4% of the total global funding ($37 billion) in the first quarter of 2024. The US tech startups achieved $19.5 billion in the same period.

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Among the business models, KYC software received the highest funding at $107 million between January and 15 March, followed by hyperlocal delivery app at $100 million. Fintech received $429 million in funding, marking a 48% growth from the last quarter's $289 million.

The investment growth in the FinTech sector is propelled by the rapid growth seen in smartphone penetration driving the cashless economy, and other favorable regulatory policies have helped the sector receive consistent investor interest.

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Only two tech startups received $100 million of funding in the past three months of the current calendar year-Perfios and Shadowfax. The quarter saw the emergence of two new unicorns—Perfios and Ola Krutrim as compared to 20 globally. Additionally, IPO numbers surged, with eight tech companies going public--Exicom, WTI, DocMode, Brisk, LawSikho, Medi Assist, IBL Finance, and HRHNext.

India's startup growth to pave way to developed nation by 2047: PM Modi

Bengaluru emerged as the leader in total funds raised during Q1 (Until 15th March) 2024 at $752 million, followed closely by Mumbai ($166 million) and Noida ($105 million). Delhi's tech startups received 96.8 million in funding in Q1 2024 while Gurugram's startups raised $97.7 million in the same duration.

"Despite the funding slowdown and economic fluctuations, India's tech startup ecosystem is still one of the top-performing tech ecosystems globally. We anticipate the bounce back quickly, propelled by government initiatives and a large consumer base comprising the world’s largest young population," Neha Singh, Co-Founder of Tracxn said.

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ABOUT THE AUTHOR
Mansi Jaswal
I write about gender-related issues, women's rights, women empowerment, gender equality, women's health topics, and their wealth management. Also, profiling women who have fought all odds to make their own identities in their own rights. Before Mint, I worked at Business Today and Business Standard. I studied journalism at IIMC, Delhi. Got a story idea? Email me at mansi.jaswal@htdigital.in
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Published: 29 Mar 2024, 03:33 PM IST
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