Active Stocks
Fri May 24 2024 15:59:27
  1. Tata Steel share price
  2. 174.80 -0.37%
  1. NTPC share price
  2. 374.85 0.68%
  1. State Bank Of India share price
  2. 828.60 -0.45%
  1. ITC share price
  2. 436.10 -1.16%
  1. Power Grid Corporation Of India share price
  2. 318.50 -0.39%
Business News/ Companies / Start-ups/  Kerala-based startups witness 40% surge in seed-stage funding in 2023: Report
BackBack

Kerala-based startups witness 40% surge in seed-stage funding in 2023: Report

Overall funding for Kerala-based startups in 2023 increased by 15% to $33.2 million. However, early-stage funding dropped by 32% to $7 million. Food & Agriculture Tech-related startups saw a 266% spike in funding.

Kochi emerges as Leading City for Startup Funding in KeralaPremium
Kochi emerges as Leading City for Startup Funding in Kerala

Kerala-based startups witnessed a big boost in funding in the 'seeding stage' in 2023, according to the Tracxn Geo Annual Report.

The data intelligence platform mentioned that Kerala's startups attracted seed-stage investments worth $26.2 million in 2023 as against $18.7 million raised in 2022 with a 40% surge on a year-on-year basis. Avaana Capital Advisors, 9Unicorns, and Huddle were the most active investors in seed-stage rounds, according to Tracxn Technologies's Kerala Tech 2023 report.

Cash-strapped Dunzo promises to pay former staff by March-end

Overall, the Kerala-based startups raised $33.2 million in 2023, an uptick of 15% increase from $28.9 million raised in 2022.

However, the early-stage funding dropped 32% to $7 million in 2023 from $10.3 million in 2022. The Kerala startup ecosystem has not recorded any late-stage funding in the last five years.

Edtechs have a reality check moment. Will they survive it?

Among the sectors, the Food & Agriculture Tech-related startups saw a 266% spike in funding to $7.4 million in 2023 from $2 million in 2022. The Retail sector secured total funding of $3.9 million in 2023. Fundings in the ed-tech sector in Kerala-based startups declined to $3.47 million in 2023 from $7.2 million in 2022.

Among the cities, Kochi took the lead in funding, accounting for 87% of the total funds raised in the state. Kochi-based startups raised $29 million, followed by those based in Alappuzha and Thiruvananthapuram raised $4 million and $709K respectively.

Layoffs continue to roil software industry with 32,000 jobs cut

Further, the Kerala tech startup ecosystem witnessed six acquisitions in 2023, a slight improvement from two during the previous year.

Physics Wallah acquired Xylem Learning for $61 million. Radiant Cash Management acquired Kochi's Acemoney, VRIZE acquired Thirubanthpuram's Perfomatix, CareStack acquired Waybeo, and Gharienin Group acquired Kozhikode-based Bentlon last year, respectively.

Kerala Tech startup ecosystem stands at 11th place among the other startup landscapes in India with an overall funding of $354 million to date. The Government of Kerala has established the KSUM (The Kerala Startup Mission) agency for the development of its startup ecosystem.

You are on Mint! India's #1 news destination (Source: Press Gazette). To learn more about our business coverage and market insights Click Here!

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
Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 15 Feb 2024, 02:40 PM IST
Next Story footLogo
Recommended For You