Maharashtra Tech Startups See 62.5% Fall In Funding In 2023 The Maharashtra Tech startup ecosystem is the second-highest region in India in terms of funding, after Karnataka.
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The Maharashtra Tech startup ecosystem is the second-highest region in India in terms of funding, after Karnataka, with an overall funding of more than $30 billion to date. It is also the second highest-funded state in 2023 in the Indian Tech startup space.
A recent survey threw up some interesting data on the state's start up scene, here are some significant figures from it:
1. Despite being one of the top-funded states in India, the state has recorded only $2.1 billion in funding in 2023, the lowest funding the region has witnessed in the last five years.
2. In 2023, the Maharashtra Tech space witnessed four $100M+ funding rounds, a sharp contrast from 13 in 2022. Zepto and InCred were the two new unicorns that emerged in the state in 2023, significantly lower than the eight new unicorns created in 2022.
3. The Maharashtra Tech startup ecosystem secured total funding of $2.1 billion in 2023, a sharp decline of 62.5% from the $5.6 billion raised in 2022, and a drop of about 76% of the funding raised in 2021. This sector attracted seed-stage investments worth $108 million in 2023, a 73% decline compared with the $404 million raised in 2022. Early-stage funding fell 70% to $415 million in 2023 from $1.4 billion raised in 2022. Late-stage funding in 2023 stood at $1.6 billion, a 59% drop compared with $3.8 billion raised in 2022.
4. Retail, healthtech and transportation and logistics tech were the top-funded segments in this space in 2023. The retail sector witnessed a total funding of $483 million, a drop of 65% compared with the previous year. Healthtech companies based in Maharashtra attracted total funding of $464 million in 2023, a growth of 14% from 2022. The transportation and logistics tech sector in 2023 secured funding worth $453 million in 2023, which is a drop of 59% when compared with 2022. However, there was a small uptick in the number of IPOs, from five in 2022 to seven in 2023.
5. The Maharashtra Tech space witnessed 34 acquisitions in 2023, 15% lower than the 40 acquisitions recorded in 2022.
6. Mumbai took the lead in terms of city-wise funding in the state, followed by Pune and Thane. Tech startups based in Mumbai raised $1.8 billion in 2023, followed by those based in Pune and Thane raised $252 million and $50 million respectively.
7. Blume, Venture Catalyst, LetsVenture are the most active investors in the Maharashtra Tech Landscape till date. 100X.VC, We Founder Circle and Venture Catalysts were the most active seed-stage investors in 2023, while Elevation, Temasek, and TPG were the top early-stage investors in 2023. Glade Brook Capital, Avataar Ventures and B CAPITAL were the most active late-stage investors in 2023.
Source: Tracxn Geo Annual Report: Maharashtra Tech 2023
