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Retail tech funding fell 24% in Q2

Kimberly Chin
Jul 18, 2023
Data: CB Insights; Chart: Axios Visuals
Data: CB Insights; Chart: Axios Visuals

Retail tech funding slumped in the second quarter, according to a report from CB Insights.

Why it matters: A confluence of inflation, a tightening of consumer spending and economic uncertainty has given investors pause — especially on startups that touch on consumer discretionary.

What’s happening: Retail tech funding fell 24% in the quarter ended June 30, and the number of deals fell 15%.

  • Investors gave U.S. startups $1.7 billion in funding across 153 deals, followed by Asia, with startups being awarded $1.4 billion across 195 deals.

Of note: Nearly 70% of retail tech deals have gone to early-stage companies this year, CB Insights finds.

Details: The biggest deal of the quarter was Zipline, an on-demand drone delivery and instant logistics firm, which raised $330 million in a Series F.

  • The San Francisco-based firm’s investors include Sequoia Capital, Andreessen Horowitz, Google Ventures and Katalyst Ventures.
  • Singapore’s e-commerce company TK Mall was the next biggest, bringing in $300 million in an undisclosed round.
  • Kite, a New York-based commerce company, followed suit, closing a $200 million Series A round to bolster its acquisition spree.

Meanwhile, Flink, the German on-demand delivery service, raised $161 million in a Series D.

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