Q1 2024: Indian Startup Funding Roundup 

The first quarter of 2024 witnessed a notable slowdown in the momentum of startup funding in India, marking a significant departure from the robust growth observed in the preceding quarters. 

Despite the slowdown, the Indian startup ecosystem continued to show resilience and adaptability, with key sectors demonstrating promising growth trajectories. Let’s delve into the key highlights and notable developments of the startup funding landscape during this period.

Key Highlights of 2024 Q1:

• Start-up funding experienced a marked slowdown in Q1 2024, following three consecutive quarters of growth.
• There was a substantial decline of 51% in startup funding compared to the same period last year, with a further 27% quarter-on-quarter drop.
• Despite the overall decline, Indian tech startups managed to secure $1.6 billion in funding during Q1 2024.
• The retail, fintech, and enterprise applications sectors emerged as the top performers, with fintech witnessing an impressive 48% growth from the previous quarter.
• Q1 2024 saw 20 acquisitions, marking a 33% decrease from the previous quarter, indicating a potential shift in investment strategies.
• Bengaluru reaffirmed its position as a leader in total funds raised during Q1 2024.

Additionally, seed-stage funding experienced a minor drop of 7% to $168 million, while early-stage funding witnessed a notable increase of 28%, reaching $745 million. Of particular interest was the funding trend in the deeptech sector, with $140 million secured across 11 deals in Q1 2024.

Key Startups that Raised Funding in Q1 2024:

• Capillary Technologies:
  • Extended its Series D funding round to $140 million, with $95 million raised in secondary transactions.
  • Capillary Technologies specializes in customer engagement and loyalty software services, showcasing investor confidence in its market position and business model.

• Rentomojo:
  • Raised Rs 210 crore ($25 million) in a late-stage funding round led by Edelweiss Discovery.
  • Rentomojo, a furnishing rental startup, aims to further expand its offerings in the rental market with this investment.

• Captain Fresh:
  • Raised $25 million in a funding round led by UK government-backed British International Investment (BII) and Andhra Pradesh-based Nekkanti Seafoods Group.
  • The investment in Captain Fresh highlights growing interest in the online seafood industry and the company’s potential for market expansion.

• Perfios:
  • Raised $229 million in a Series D funding round led by Indian private equity firm Kedaara Capital.
  • Perfios specializes in real-time credit underwriting solutions and plans to use the funding to deepen its presence in North America and Europe.

• Krutrim:
  • Achieved unicorn status with a $50 million funding round led by Matrix Partners India.
  • Krutrim, an AI startup founded by Ola’s Bhavish Aggarwal, aims to disrupt the AI landscape with its large language AI models.

Conclusion:

Despite the challenges posed by the economic landscape, the Indian startup ecosystem continues to demonstrate resilience and innovation.

While Q1 2024 saw a slowdown in funding activity, key sectors like fintech and deeptech displayed promising growth trajectories. The influx of funding into notable startups underscores investor confidence in India’s entrepreneurial landscape, paving the way for further growth and disruption in the quarters to come.