Retail tech funding fell 24% in Q2
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.