New Delhi, March 26 (IANS): The Indian tech startup ecosystem received $1.6 billion in total funding in the first quarter this year (till March 15), becoming the fourth-highest nation globally in terms of funding raised during this period, a new report showed on Tuesday.

Retail, fintech and enterprise applications were the top-performing sectors, with fintech witnessing a 48 per cent growth from the previous quarter due to the rapid adoption of smartphones and other favourable regulatory policies, according to the report by Tracxn, a leading market intelligence platform.

“Despite the funding slowdown and economic fluctuations, India's tech startup ecosystem is still one of the top-performing tech ecosystems globally,” said Neha Singh, Co-Founder of Tracxn.

“India's strong tech ecosystem and demographic advantages promise a bright future and solidify its position as a global tech leader,” Singh added.

Out of $1.6 billion in funding, Shadowfax and Credit Saison received the highest funding of over $100 million, with Capillary, Rentomojo and Captain Fresh also being among the top funded companies.

The quarter saw the emergence of two new unicorns — Perfios and Ola Krutrim -- underscoring the resilience and potential of India's tech landscape.

Additionally, IPO numbers surged, with eight tech companies going public, including MediaAssist, WTI, Exicom, and LawSikho, reflecting investor confidence in the sector, the report showed.

Overall, there were 20 acquisitions during the quarter, a 33 per cent decrease from last quarter and a 55 per cent drop compared to 45 acquisitions in Q1 2023.

Bengaluru emerged as the leader in total funds raised during Q1 2024, followed closely by Mumbai and Noida, reaffirming the significance of these tech hubs in India's startup landscape, the findings showed.