The retail sector received a total of USD 494 million in funding in Q1 2024 to date which is a 34 per cent drop compared to USD 751 million raised in the same period Q4 2023, according to a report by Tracxn.
However, India Tech Quarterly Funding Report – Q1 2024 stated that it is a significant increase of 139 per cent compared to USD 206 million raised in the same period Q1 2023.
According to the report, Shadowfax is the top-funded company in the sector in Q1 2024 receiving USD 100 million in a Series E round followed by Capillary, Rentomojo and Captain Fresh are some of the other top-funded companies in the sector in this quarter.
Indian economy showed a strong performance in the previous quarter with a growth of 8.4 per cent. However, the government estimates the growth percentage in 2024 to be around 7.6 per cent while for Q1 2024 it will be 5.9 per cent, the lowest in past 4 quarters.
Around USD 12B was allocated in the Interim Budget for 2024 for providing interest-free loans for 50 years to promote R&D in the private sector in the country which can potentially give a significant boost to the Indian tech ecosystem. According to the IMF report, India is expected to become the third-largest economy in the world by 2027 with a GDP of over USD 5 trillion
With a large consumer base comprising the world’s largest young population and rising urban income levels, India is set to see good growth in the coming years, the report said.
“The current stand of the US and other major economies is to reduce their dependence on China for their manufacturing and raw material needs, majorly the semiconductor segment can also witness an increase in the investment flow in the Indian market,” the report stated.
