Hyderabad: According to Tracxn Geo Annual Report of 2023, tech startups in Telangana raised $99.2 million dollars in 2023, witnessing a sharp drop of 78% as compared the $459 million the previous year.
Experts from the Tracxn Geo in Annual Report pointed out that this slump in funding was due to a mix of global economic uncertainties and political issues. Despite these challenges, Telangana’s tech sector has raised a total of $2.7 billion so far.
In 2023, the report noted, new companies found it hard to get funding, with early-stage investments dropping 71% to $80.1 million. The state also saw fewer company sales, with only two recorded in 2023 compared to nine in 2022.
Despite the overall decline, some sectors like Education Technology (EdTech) and Aerospace, Maritime & Defense Technology stood out, the report said. EdTech companies, for instance, saw a 65% increase in funding, attracting $33 million.
The report said that the funding slowdown is not just in Telangana. Delhi NCR, Karnataka, Maharashtra, Tamil Nadu, and Gujarat also faced reductions in funding.
