Unicorns were created in Q1Fy25 and Q4Fy24, compared to two unicorns in Q1Fy24. | Photo credit: Istockphoto
The Karnataka technological start ecosystem reached a fall in funds in the Q1Fy25, raising $ 633 million, a strong 23 percent of the fall of the anterior quarter and 46 percent decrease to year, according to the latest Tracxn report. Despite the recession, sectors such as business applications, Fintech and retail trade arose as bright points, collectively attracting most of the interest of investors.
The seed stage received funds of $ 57.3 million in Q1Fy25, or a 14 percent drop compared to $ 66.6 million raised in Q4Fy24 and an additional 5 percent decrease against $ 128 million raised in Q1Fy24. The financing of the early stage touched $ 294 million in Q1Fy25, or an increase of 34 percent compared to $ 220 million raised in Q4Fy24, and a 14 percent drop compared to $ 344 million raised in Q1Fy24. The late stage saw a total financing of $ 282 million in Q1Fy25, a 48 percent drop, compared to $ 539 million raised in Q4Fy24, and a fall or 60 percent compared to $ 707 million collected in Q1Fy24. In general, Karnataka did not see more than 100 million rounds in the first quarter of 2025.
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The business request sector received $ 298.6 million in funds in the first quarter of fiscal year 2015, or an increase of 80 percent compared to the $ 166 million raised in the fourth quarter of 24 and a 18 percent drop against $ 362.3 million collected
The Fintech sector obtained total financing of $ 221.1 million in Q1Fy25, which is an increase of 271 percent compared to the $ 59.7 million raised in Q4Fy24 and a 28 percent drop against $ 309.2 million raised in Q1Fy24.
The retail sector raised $ 219.8 million in funds in Q1Fy25, an increase of 80 percent of $ 122 million in Q4Fy24 and a 12 percent drop compared to $ 249.4 million raised in Q1Fy24.
The report also indicated that no company becomes public in Q1Fy25. Unicorns were created in Q1Fy25 and Q4Fy24, compared to two unicorns in Q1Fy24.
21 acquisitions
Within the technological ecosystem, the State witnessed 21 acquisitions in Q1Fy25, a 91 percent increase of 11 acquisitions in Q1 and Q4 or Fy24. The acquisition of greater value was that of Axio by Amazon for $ 150 million, followed by the acquisition of Digiledge by Mintak for $ 3.50 million. Accel, Blume Ventures and Sequoia Capital were the main technological investors, with 100x.VC, risk catalysts and antlers as the main investors of the seed stage for Q1Fy25.
Among the Risk Capital (VC) companies, Accel made the largest number of investments with 16 rounds.
In terms of recession and total decrease in financing, the report declared: “Bengaluru remained a technological center, attracting almost all funds in the state. While the seeds of seeds and late stages decreased, investments in the initial stage showed Andstis, support and stage, botts and stylians, supports. Investors.”
(With supplies from Nethra Sailesh internal from the business line)
Posted on April 16, 2025
