NEW DELHI, Feb 14: Maharashtra based startups have received a total funding of USD 285 million in 2016, registering a 42.4 per cent decline in value terms, says a report.
According to the News Corp VCCEdge’s latest report focused on startup funding in Maharashtra, 2016 witnessed 219 deals worth USD 285 million as against 282 transactions worth USD 496 million in 2015, a drop of 22.3 per cent in the number of deals and 42.4 per cent in terms of deal value.
In the last five years, the total funding received by Maharashtra based startups across 866 deals (angel/seed, series A, series B) amounted to USD 1,312 million, according to VCCEdge Funding Insights.
The report further noted that the contribution of angel/ seed funding in Maharashtra has touched a five year high of 80 per cent in 2016, while series A funding and series B funding took a major hit.
“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,” Nita Kapoor Head India New Ventures News Corp and CEO News Corp VCCircle said.
However, the fall in ‘growth stage’ funding is indicative of these startup ideas failing to achieve scale. The need for more startup incubators in the state with academic and private sector funding has to be emphasized upon, Kapoor added.
In terms of cities, Mumbai and Pune were the epicenters of startup funding in Maharashtra in 2016, cornering 96 per cent of number of deals and 99 per cent of deal value.
Sector wise, fintech and foodtech startups in the state continued to rake in maximum investor interest in 2016.
Fintech startups cornered USD 27.55 million funding from 15 deals while foodtech startups came second with USD 16.5 million raised from 9 funding deals, the report said. (PTI)