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Business News/ Companies / Start-ups/  Funding in Karnataka, Gujarat, and Tamil Nadu tech startups plummet in 2023: Report
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Funding in Karnataka, Gujarat, and Tamil Nadu tech startups plummet in 2023: Report

Funding in Gujarat-based tech startups fell 66% to $139 million in 2023 from $412 million in the previous year.
  • Tamil Nadu-based tech startups secured a total funding of $255 million in 2023 as against $1.7 billion raised in 2022.
  • Funding in Karnataka, Gujarat, and Tamil Nadu tech startups dropped by 72%, 66%, and 85% respectively YoY basis in 2023Premium
    Funding in Karnataka, Gujarat, and Tamil Nadu tech startups dropped by 72%, 66%, and 85% respectively YoY basis in 2023

    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.

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    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.

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    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.

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    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.

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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: 15 Feb 2024, 03:17 PM IST
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