Funding into Karnataka-based Tech Start-ups Falls 72% to $3.4bn
IANS 13 February 2024
Total funding into Karnataka-based tech start-ups sharply fell 72% to US$3.4bn (billion) in 2023, from US$12.2bn in 2022, a new report said on Tuesday.
 
This decline can be attributed to the prevailing macroeconomic conditions and geopolitical issues as the total number of US$100mn (million) and above rounds fell to 8 in 2023 from 26 in 2022, according to the report by Tracxn, a data intelligence platform.
 
The state has more than 18,000 start-ups and is home to 39% of the unicorn companies in the country.
 
The start-ups in the state attracted late-stage investments worth US$2.3 billion in 2023, a 74% decline compared with $8.9 billion in 2022.
 
Early-stage funding in 2023 stood at US$784mn in funding, a drop of 71% from the US$2.7 bn raised during the previous year.
 
Seed-stage funding fell 54% to US$294mn from the US$643mn raised in 2022.
 
Only eight $100 million and above funding rounds were observed in this space in 2023, as against 26 and 44 such rounds in 2022 and 2021, respectively.
 
PhonePe and Udaan secured the highest funding in 2023, raising US$623mn and US$377mn in Series D and Series E funding rounds, respectively.
 
Further, no new unicorns emerged from this space in 2023, a sharp contrast from seven unicorns in 2022 and 18 in 2021, according to the report.
 
Fintech, retail and enterprise applications were the top-funded segments in 2023.
 
The fintech sector in Karnataka secured a total funding of US$1.15bn in 2023, a decline of 51% compared with US$2.4bn raised during the previous year.
 
In 2023, the Karnataka tech sector witnessed 35 acquisitions, significantly lower than 48 acquisitions in 2022 and 57 acquisitions in 2021.
 
Accel, Wellfound, and LetsVenture are the top investors in the state of Karnataka to date.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article. 
 
Comments
aradhanashukla007
5 months ago
By which criteria lets venture is a VC fund?
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