Indian Tech Startups Raise $1.6 Billion in Q1 2024, Retail and Fintech Lead Growth

The Indian tech startup ecosystem has garnered a significant amount of attention in the first quarter of this year, with a total funding of $1.6 billion reported until March 15. This places India as the fourth-highest nation globally in terms of funding raised during this period, according to a new report released on Tuesday.

Retail, fintech, and enterprise applications emerged as the top-performing sectors, with fintech witnessing an impressive 48 per cent growth from the previous quarter. This surge is attributed to the rapid adoption of smartphones and favourable regulatory policies, as highlighted in the report by Tracxn, a leading market intelligence platform.

Neha Singh, Co-Founder of Tracxn, expressed optimism about India’s tech startup ecosystem despite economic fluctuations, stating that it remains one of the top-performing tech ecosystems globally. Singh emphasized India’s strong tech ecosystem and demographic advantages, foreseeing a promising future and solidifying its position as a global tech leader.

Among the top-funded companies, Shadowfax and Credit Saison received the highest funding, each surpassing $100 million, followed by Capillary, Rentomojo, and Captain Fresh. The quarter also witnessed the emergence of two new unicorns – Perfios and Ola Krutrim – showcasing the resilience and potential of India’s tech landscape.

Moreover, the report revealed a surge in IPO numbers, with eight tech companies going public, including MediaAssist, WTI, Exicom, and LawSikho, reflecting investor confidence in the sector. Despite a decrease in acquisitions compared to the previous quarter, Bengaluru emerged as the leader in total funds raised during Q1 2024, followed closely by Mumbai and Noida, reaffirming the significance of these tech hubs in India’s startup landscape.