Funding in Karnataka, Gujarat, and Tamil Nadu tech startups plummet in 2023: Report

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Kerala-based startups witness 40% surge in seed-stage funding in 2023: Report Tamil Nadu startups also saw a crunch in funding, with an 85% plunge last year. Tamil Nadu-based tech startups secured a total funding of $255 million in 2023 as against $1.7 billion raised in 2022. Karnataka's tech startups attracted late-stage investments worth $2.3 billion in 2023, a 74% decline compared with $8.9 billion in 2022.

Only eight $100 million plus funding rounds were observed in this space in 2023, as against 26 and 44 such rounds in 2022 and 2021, respectively. Edtechs have a reality check moment. Will they survive it? As per the Tracxn report, fintech, retail, and enterprise applications were the top-funded segments in Karnataka-based startups last year.

The FinTech sector in Karnataka secured a total funding of $1.15 billion in 2023, a decline of 51% compared with $2.4 billion raised during the previous year. The Retail sector witnessed total funding of $956 million while startups in the Enterprise Applications sector attracted investments worth $928 million in 2023. Bengaluru took the lead in terms of city-wise funding in 2023.

Startups based in Bangalore raised $3.4 billion in 2023, while those based in Hubli raised $121,000. Accel, Wellfound, and LetsVenture have been the top investors in the state to data, the report said. Startup funding winter takes a toll on vendors In Gujarat, Vadodara took the lead in startup funding by raising $65 million in 2023 while Surat and Ahmedabad-based startups raised $41 million and $33 million respectively.