Funding for Indian technology startups declined 72 per cent in 2023, making it the lowest-funded year in the last five years, said a report on Friday.
Startups have got $7 billion yet this year compared to $25 billion last year. India continues to be the fourth in rank as the highest-funded geographies globally in 2023.
The last quarter (Q4) received $957 million, the lowest-funded quarter since Q3 2016, according to Tracxn Geo’s 'Annual Report: India Tech 2023'. Late-stage funding in 2023 has declined by more than 73 per cent to $4.2 billion compared to $15.6 billion in 2022. There have been 17 funding rounds of $100 million+ each yet this year, dropping 69 per cent compared to last year
Fintech, which is driven by increasing smartphone penetration and government initiatives for a cashless economy, has received $2.1 billion in funding in 2023, a decrease from $5.8 billion last year.
PhonePe, a digital payments company, is the top-funded company in fintech by securing $750 million in four Series D rounds. PhonePe makes up for 38 per cent of the funding received by the sector. Perfios, Insurancedekho, and Kreditbee are some other top-funded fintech companies in 2023. ALSO READ: Minuscule AI startup raises $41 million to tap growth in Indian market
Retail sector has got $1.9 billion, a 67 per cent drop compared to 2022. Eyewear brand Lenskart, which raised $600 million in two Series J rounds, is the top-funded retail company this year
Enterprise application is the third-highest funded sector in 2023 after securing $1.56 billion, but financing for it decreased 78 per cent compared to the previous year.
Environment and space technology sectors get investor attention despite funding slowdown for other startups. Environment tech received $1.2 billion in funding and space got $122 million after private companies were allowed in the sector.
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