Mumbai startup funding hits 3-year low amid extended winter

As per the latest report from Inc42 on Indian Tech Startup Funding 2023, Mumbai, India’s third-highest funded startup hub, witnessed a significant decline in overall funding, plunging to a three-year low amidst the extended funding winter of 2023.

Startup funding in Mumbai nosedived by 62% year-on-year (YoY), plummeting to $1.5 billion in 2023 from $5.5 billion in 2022. This stark drop brought the total funding raised by Mumbai startups in line with figures from 2019, hovering around $1.2 billion. The number of deals also experienced a downturn, slipping from 249 in 2022 to 160 in 2023.


The decline mirrors the broader funding trend across the Indian startup ecosystem, which hit a seven-year low despite securing just over $10 billion in the previous year.

In 2023, Mumbai saw two significant deals. Zepto, a quick-commerce unicorn, secured $231.25 million across two deals, while B2B digital lending startup Mintifi raised $110 million as part of its Series D funding round led by Premji Invest.

It’s noteworthy that Zepto made headlines in August by raising $200 million in its Series E funding round at a valuation of $1.4 billion, marking the first unicorn of 2023.

Bengaluru and Delhi NCR emerged as the other major hubs, with Bengaluru startups raising $4.2 billion across 249 deals and Delhi NCR securing $2.7 billion across 243 deals.

E-commerce, fintech, and enterprise tech remained the top-funded sectors in Mumbai in 2023. The ecommerce sector garnered $330 million, while fintech startups raised $345.8 million, and enterprise tech startups secured $172.5 million.

The Maharashtra government is actively supporting the startup ecosystem, with initiatives aimed at fostering sustainability and innovation. These efforts include revising the state’s startup policy launched in 2018 and creating dedicated startup zones with comprehensive facilities to elevate Maharashtra’s status as a thriving hub for innovation and entrepreneurship.