Bengaluru start-ups raise 53% of total funding in Feb: Report

Bengalurustart-ups raised 53 per cent of the total funding in February 2024, as per research and market intelligence firm Private Circle.

Bengaluru-based start-ups raised ₹2,661 crore of the total funding of ₹5,039 crore in February 2024, followed by Mumbai and Delhi NCR, which raised 922 crore and ₹829 crore in funding, respectively.

• Also read: Tamil Nadu crosses 8,000 DPIIT-registered start-ups 

Funding rounds

Overall, Tier 1 city start-ups raised 99 per cent of the total funding amount raised in Feb 2024, while Tier 2 and 3 city start-ups raised just one per cent. The average deal size for Tier 1 city start-ups was around ₹33 crore and a mere ₹4 crore for Tier 2 and 3 city start-ups.

The total funding raised by start-ups in February was up by a whopping 43 per cent to ₹5,039 crore compared with ₹3,535 crore in the year-ago period and up by 7 per cent as compared with ₹4,707 crore in January 2024.

While deal count rose by 19 per cent to 130 funding deals in February 2024 compared with 109 deals in the year ago period. The top 3 deals this month were Shadowfax, which raised ₹829 crore, River with ₹332.2 crore, and RentoMojo with ₹210 crore.

• Also read: Kerala start-ups urged to tap vast African market 

Angel rounds

Further, angel funding was the most popular investor type in Tier 2 and 3 cities. Almost 34 per cent of the angel deals happened in Tier 2 and 3 city start-ups. In comparison, only 6 per cent of VC/PE deals happened in Tier 2, 3 city start-ups, and this number was zero for family offices.

The other cities in the list include Pune with ₹240 crore, Hyderabad with ₹201.94 crore, Jaipur with ₹50 crore, Chennai with ₹46 crore, Ahmedabad with ₹46 crore, and Kolkata with ₹23 crore of funding.

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