The Tracxn Geo Annual Report: Gujarat Tech 2023, based on our extensive database, provides a round-up of funding and other major developments in the Gujarat Tech space in 2023.
Gujarat is among the best-performing states for providing a supportive environment for startups. The region holds the ninth rank among the top-funded states in India with a total funding of $1.15 billion to date. It also holds the eighth position in terms of funding raised in 2023.
Compared with 2022, the region has observed a decline in funding in 2023. This is largely due to the global macroeconomic climate driven by tense geopolitical relations. Despite this, because of the government's robust startup mentoring programme, Gujarat has emerged as the best performer in 2022, for the fourth consecutive year.
Funding into Gujarat-based tech startups fell 66% to $139 million in 2023 from $412 million in the previous year. Seed-stage funding in 2023 stood at $38 million, an increase of 28% compared with $29 million raised in 2022. Early-stage investments fell 27% to $66 million from $91 million in 2022. Companies in this space attracted late-stage funding worth $34 million in 2023, a decline of 88% from $290 million in 2022.
Transportation & Logistics and Environment Tech were the funded sectors in the Gujarat tech startup ecosystem in 2023. Companies in the Transportation and Logistics sector in 2023 secured a total funding of $65 million, which is a 160% spike from the amount raised in 2022. Environment Tech companies based in Gujarat raised $64 million in 2023, a jump of 191% compared with 2022.
There was hardly any activity in terms of exits. The number of acquisitions in this space fell to three in 2023 from seven in 2023. Further, only one IPO took place, as against two IPOs in the previous year.
In terms of city-wise funding, Vadodara took the lead, followed by Surat and Ahmedabad. Vadodara-based startups raised $65 million in 2023, while those based in Surat and Ahmedabad raised $41 million and $33 million respectively.
CIIE, Gujarat Venture Finance and LetsVenture are the top investors in the Gujarat Tech Landscape till date. Gujarat Venture Finance, We Found Circle and Y Combinator were the most active investors in terms of seed-stage funding in 2023.
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