Maharashtra's Startup Ecosystem Flourishes with Funding Boost in H1 2024: Tracxn Report Maharashtra came in second to Karnataka in terms of the highest-funded state ecosystems in the country, according to a Tracxn Report named Tracxn Geo Semi-Annual Report: Maharashtra Tech H1 2024'.
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Maharashtra came in second to Karnataka in terms of the highest-funded state ecosystems in the country, according to a Tracxn Report named Tracxn Geo Semi-Annual Report: Maharashtra Tech H1 2024'.
Maharashtra saw an overall total investment of USD 32 billion to date, with the state hosting more than 24000 startups, including 28 per cent of active unicorn companies in the country. The report showcased that the state saw a significant 50 per cent increase in funding during the first half of 2024, compared to the same period in 2023.
Source: Tracxn Technologies
The results can be attributed to various initiatives such as the Maharashtra state government's launch of the Maharashtra State Innovation Society (MSInS) to bolster the startup ecosystem by helping startups with funding, mentorship, and incubation support since its inception in 2021.
Notably, the state also is known for providing tax incentives, ranks high within the country for ease of doing business, and backs infrastructure improvements that support startups, particularly in sectors like agriculture, enterprise technology, and retail.
The report states that the region was able to raise USD 1.5 billion in H1 2024, which is more than 50 per cent growth compared to H1 2023. The report further indicates that the growth in investments was due to late-stage rounds. The tech sector alone recorded late-stage funding of USD 1.2 billion in H1 2024, which is a 124 per cent spike compared to the first half of 2023.
Quickcommerce company Zepto, API Holdings, and Avanse all reported a USD 100 million plus rounds in the first half of 2024. The report indicates that food and agriculture tech, enterprise applications, retail and FinTech were the top-performing sectors with food and agriculture bagging as much as USD 735 million in H1 2024.
Funding in the Enterprise Applications sector rose 91 per cent to USD 340 Million in H1 2024 from USD178 million in the first six months of 2023. The Retail space raised USD 322 million in H1 2024, a decline of 14 per cent compared with USD 375 million raised in H1 2023. FinTech companies secured total funding of USD 289 million, 8 per cent lower than the USD 313 million raised in H1 2023.
Mumbai, termed as India's financial capital unsurprisingly took the lead in terms of city-wise funding, with the tech startups based in the state's capital raising a total of USD 1.3 billion.
