Amid the funding winter, Chennai startups crossed the $1-billion funding mark for the first time in a year in 2022, according to data from Tracxn.

Chennai-based startups raised USD 1.5 billion this year, up 71 percent from USD 876 million in 2021, whereas early-stage startups in other major Indian cities struggled to attract investors amid a so-called funding winter.

Funding In Chennai Startups

Few Chennai-based startups that raised funding in 2022 include, 

• Coastal Aquaculture Research Institute Pvt. Ltd, which operates aqua farmers’ network Aquaconnect, raised Series A funding of $15 million (around Rs 127 crore).

• Healthtech startup Blod.in raised an undisclosed amount in pre-seed funding to scale up and invest in infrastructure, expansions, and technology stacks.

• The Meat Chop, a local butcher stores sourcing startup, raised Rs 7 crore in a seed funding round.

• Hybrid workplace platform GoFloaters raised an undisclosed amount in a seed funding round from Loyal VC, a Canada-based global venture fund with investments in more than 50 countries.

• Vajro, a mobile app builder, has raised $8.5 million in a Series A funding round from Kansas City-based growth equity firm Five Elms Capital. 

As per Tracxn, because of the funding winter of 2022, startups in Bengaluru, Delhi-NCR and Mumbai witnessed the fewest number of deals in the last five years.

Data from Tracxn showed that Delhi-NCR-based startups witnessed a massive drop in funding as their startups saw a funding drop of 52 percent to USD 5 billion in 2022. 

Bengaluru retained its pole position as the most attractive destination in India for venture capital, with USD 11.7 billion, though it is 46 percent lower compared to the previous year, 

Meanwhile, Mumbai-based startups witnessed a 26 percent prop in funding to USD 4 billion in 2022, while Pune startups fared comparatively better as their total funding during the year fell by just around 1.5 percent to USD 985 million.

This year, until the end of November, VC firm Sequoia Capital led venture capital investments in India, completing 71 deals. Accel became the second most active VC firm in India, investing in 54 startups in India.

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