Startups from Maharashtra state had faced hard situation in 2016 as they received $285 Million which resulted in 48% decline in value terms.
According to a report by News Corp VCCEdge’s on startups, in 2016 Maharashtra has witnessed 219 deals worth of $285 Million compared with 282 transaction deals which worth $496 Million in the year 2015. This made a drop of 22.3 percent in the number of deals and 42.4 percent in terms of deal value. The total funding received by Maharashtra startups in past 5 years is $1,312 Million for 866 transaction deals which include Angel/Seed funding, Series A and Series B funding.
Nita Kapoor, head of VCCEdge said: “The rise in angel/seed funding in the state is encouraging from the viewpoint of promising business ideas, which have the potential of fulfilling needs of the end customer, continue to get requisite funding.”
Investments in startups have come down dramatically after a few years of excessive capital coming into young tech startups in India. Despite the decline in big financing rounds, angel and seed funding of startups in Maharashtra as a percentage of a total number of deals touched a five-year high of 80% in 2016.
Mumbai witnessed downfall as its startup epicenter Powai saw many shutdowns last year. Startups like TinyOwl, Purple Squirtle, Task Bob, Groc-shop have shut down last year. The city has racked $232 Million worth of funding across 151 deals last year.
On the other hand, Pune bagged $52.9 Million worth funding from 59 deals. The city registered 69% of annual increase for financial funding deals.
In terms of cities, Mumbai and Pune were the epicenters of startup funding in Maharashtra in 2016, cornering 96% number of deals and 99% of deal value. Sector-wise, fintech and foodtech startups in the state continued to rake in maximum investor interest in 2016.
Fintech startups cornered $ 27.55 million funding from 15 deal and Foodtech startups raised $ 16.5 million raised from 9 funding deals. Read more startup news.