Bengaluru has been declared as the torchbearer of startup funding for February 2024. Reportedly, it secured an impressive 53% share of the total funding, amounting to 2,661 crore.

The detailed analysis of PrivateCircle’s Research unveiled that, startups in Mumbai and Delhi NCR secured 922 crore and 829 crore in funding, in the same period and secured second and third spots in this race of funding.

Other cities which shows remarkable growth and secured spot  in the top 10 list included Pune at 240 crore, Hyderabad at 201.94 crore, Jaipur at 50 crore, Chennai at 46 crore, Ahmedabad at 46 crore, Kolkata at 23 crore, and Vadodara at 10 crore.

The research also highlighted that, a sharp disparity is there in the funding landscape between Tier 1 and Tier 2, 3 cities. In tier 1 cities startups accounted for a substantial 99% of the total funding raised in February 2024, leaving only 1% for Tier 2, 3 city startups.

The average size of the deal for startups in Tier 1 cities was approximately 33 crore, while for Tier 2, 3 city startups this stood at a mere 4 crore per deal, indicating an almost eight-fold difference in deal sizes.

In Tier 2, 3 cities angel investing is the preferred type of funding with almost 34% of angel deals occurring in these cities. On the contrary, Tier 2, 3 city startups saw minimal participation in VC/PE deals, accounting for only 6%, while family offices showed no involvement.

All in all, the funding landscape showed a positive trajectory where, the total funding amount reaching 5,039 crore in February 2024, marking a 7% m-o-m increase and a 43% y-o-y increase. Total 130 funding deals were recorded February 2024, which showed 15% rise from January 2024 and a notable 19% increase from February 2023.

The top 3 funding deals were signed by logistics services provider Shadowfax which secured 829 crore in a series E round led by TPG New Quest, EV startup River raised 332.2 crore in a series B round led by Yamaha Motor Co Ltd, Japan, and furniture rental platform RentoMojo raised 210 crore in a Series D and D1 funding round led by Edelweiss Discovery Fund Series – I.