Start-up funding falls 13 per cent to $4.1 bn in H1, 2024

India still remains the fourth-highest funded country globally in the tech start-up landscape.
In terms of performance in the first half of this year, retail, enterprise applications, and fintech were leading sectors.
In terms of performance in the first half of this year, retail, enterprise applications, and fintech were leading sectors.

BENGALURU: Though April saw a record monthly funding of $862 million, start-ups have raised only $4.1 billion in the first six months of 2024, a fall of 13% as against $4.8 billion raised in H1 2023.However, it saw 4% increase compared to H2 of 2023 as start-ups raised $3.96 billion from July-December 2023.

Tracxn in its semi annual report released on Thursday said the first half of the year witnessed eight $100 million + funding rounds and companies such as Flipkart, Apollo 24|7 and Meesho have managed to raise funds above $250 million in this period. While Flipkart has raised a total of $350 million in Series J round led by Google, Meesho raised $275 million in Series F round.

India still remains the fourth-highest funded country globally in the tech start-up landscape. The US led in overall funding volumes, followed by the UK and China.

Neha Singh, co-founder, Tracxn, said, “Despite four consecutive half-year periods of declining funding since H1, 2022, we are now showing signs of stabilisation, going upward. From emerging developments in retail and enterprise applications to pioneering advancements in fintech, Indian start-ups are transforming industries and driving economic growth.”

Seed-stage funding in January-June 2024 was down 17.3% from H1, 2023. Early-stage start-ups raised $1.3 billion, a 28% fall as against H1, 2023. Late-stage funding too saw a 1.3% drop compared to H1 2023.

In terms of performance in the first half of this year, retail, enterprise applications, and fintech were leading sectors. Funding in the retail sector rose 32%, reaching $1.63 billion in H1 of 2024 as against $1.23 billion in H1 of 2023. While the enterprise application sector raised $933 million in H1 of 2024, a 10% fall from the $1.04 billion raised in H1 2023, the fintech funding dropped by 50%, from $1.45 billion in H1 2023 to $726 million in H1 2024.

Three unicorns emerged in H1 of 2024, alongside 33 new additions to the Soonicorn club. The number of IPOs rose to 17 in H1, 2024, from six in H1, 2023 and 12 in H2, 2023. Bengaluru emerged as the leader in total funds raised during this period, followed by Delhi and Mumbai.

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