New Delhi, Apr 20 (KNN) Indian environment technology startups raised nearly USD 240 million in funding during the first quarter of 2024, according to a report by Tracxn. However, this strong start to the year follows a period of significant volatility in the sector.

The report reveals that funding for Indian environment tech companies surged from just USD 230 million in 2018 to a record USD 2.47 billion in 2022. But investment dropped 32 per cent last year to USD 1.68 billion as economic headwinds took a toll.

Early stage companies were the biggest beneficiaries in Q1 2024, raising USD 186 million collectively. Seed funding accounted for an additional USD 51.4 million. 

Bengaluru-based startups continued to lead nationally, receiving USD 2.7 billion in total funding to date.

Despite the strong Q1 numbers, the report signals ongoing challenges. The Compounded Annual Growth Rate (CAGR) for Indian environment tech funding was a negative 42 per cent over the past three years. 

Just two late-stage funding rounds occurred in Q1 - EV startup River's USD 40 million Series B and BluSmart's USD 25 million mixed debt/equity raise.

Leading investors in the space include Blume Ventures, 100X.VC and Tiger Global at the seed and early stages. 

To date, the space has seen just 14 companies achieve lucrative public listings through IPOs. An additional 25 firms have been acquired by larger players.

However, 2023 saw only a handful of startups secure mega-rounds exceeding USD 100 million in funding and only one Indian environment tech firm - Ola Electric - has achieved a billion-dollar valuation so far.

While global investments in environmental technology have surged in recent years, India's piece of the funding pie remains modest at best. 

The nation's share of worldwide environment tech funding has hovered between just 0 per cent and 7 per cent, peaking at 7 per cent in 2022 - the highest level since 2011.

(KNN Bureau)