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Telangana tech startups funding declines 78% to $99 million in 2023: Report
- Funding for Telangana tech startups fell by 78% to $99.2 million in 2023. EdTech received $33 million, and Aerospace, Maritime & Defense Tech got $35.8 million
Telangana tech startups witnessed a 78% drop in funding to $99.2 million last year from $459 million in 2022.
According to Tracxn Geo Annual Report of 2023, the plunge in funding is primarily due to a global slowdown due to macroeconomic trends, and geopolitical factors.
Telangana's tech startups have raised a total of $2.7 billion to date. In the southern state, early-stage funding fell 71% to $80.1 million in 2023.
Only two acquisitions were observed in the Telangana Tech space in 2023 as against nine in 2022. Aerospace, Maritime & Defense Tech, EdTech, and Enterprise Applications were the top-funded sectors in 2023. The Tracxn report stated that the Edtech firms attracted investments worth $33 million in 2023 in Telangana- an increase of 65% in total funding compared with 2022. The Aerospace, Maritime & Defense Tech sector secured a total funding of $35.8 million.
The most active investors in the Telangana Tech landscape are CIE IIITH, T-Hub, and Indian Angel Network. however, Temasek was the top early-stage investor last year while We Founder Circle, Equanimity Investments, and Venture Catalysts were the most active investors in terms of seed-stage investments.
Decline in funding in tech startups
Several other tech startups in Indian states have witnessed a significant drop in funding in 2023.
Funding into the Delhi NCR tech sector fell 61% to $1.5 billion in 2023 from $3.8 billion in 2022.
Maharashtra recorded only $2.1 billion in funding in 2023, the lowest funding the region has witnessed in the last five years.
The Karnataka Tech startup ecosystem received a total funding of $3.4 billion in 2023, which is a 72% plunge from the $12.2 billion raised in 2022.
Tech startups based in Tamil Nadu secured a total funding of $255 million in 2023 while Gujarat recorded $139 million of funding in the same period as per the data by Tracxn.
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Business NewsCompaniesStart-upsTelangana tech startups funding declines 78% to $99 million in 2023: Report
First Published:19 Feb 2024, 02:42 PM IST
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