In the dynamic landscape of startup funding, Bengaluru has emerged as the frontrunner for February 2024, securing an impressive 53% share of the total funding, amounting to Rs 2,661 crore, as reported by PrivateCircle.
Regional Funding Distribution
PrivateCircle Research’s analysis revealed that startups in Mumbai and Delhi NCR secured Rs 922 crore and Rs 829 crore in funding, respectively, during the same period, securing the second and third spots in the funding race. Other notable cities in the top 10 list included Pune, Hyderabad, Jaipur, Chennai, Ahmedabad, Kolkata, and Vadodara.
Disparity in Funding Landscape
The study further highlighted a significant disparity in the funding landscape between Tier 1 and Tier 2, 3 cities. While Tier 1 city startups accounted for a substantial 99% of the total funding raised in February 2024, Tier 2, 3 city startups received only 1% of the funding. This disparity extended to the average deal size, with Tier 1 city startups securing approximately Rs 33 crore per deal compared to a mere Rs 4 crore per deal for Tier 2, 3 city startups.
Investor Preferences
Angel funding emerged as the preferred investor type for Tier 2, 3 city startups, with almost 34% of angel deals occurring in these cities. In contrast, Tier 2, 3 city startups saw minimal participation in VC/PE deals, accounting for only 6%, while family offices showed no involvement.
Overall Funding Landscape
The overall funding landscape witnessed a positive trajectory, with the total funding amount reaching Rs 5,039 crore in February 2024, marking a 7% month-on-month increase and a notable 43% year-on-year increase. February 2024 recorded 130 funding deals, reflecting a 15% rise from January 2024 and a notable 19% increase from February 2023.
Top Funding Deals
The top three funding deals for February 2024 were secured by logistics services provider Shadowfax, EV startup River, and furniture rental platform RentoMojo.
Methodology
PrivateCircle Research’s analysis focused solely on funding raised by Indian-headquartered companies, excluding debt and secondary rounds. Startups were defined as companies incorporated in 2008 or later, with Tier 1 cities including Ahmedabad, Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai, and Pune.
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