We break down the retail tech landscape across funding trends, M&A, key sectors, and more.
Retail tech investment is showing some signs of life.
Across 2023, retail tech fundraising followed the overall venture slowdown: retail tech startups grabbed $19B in equity funding — just a third of the 2022 total ($55B) and 84% lower than the peak in 2021 ($118B). Deals also declined in 2023, down 44% YoY to 2,339.
But as the year closed out, some quarterly indicators turned positive. For instance, retail tech saw 10 mega-rounds (deals worth $100M or more) in Q4’23 — up from 6 the prior quarter. M&A activity continued its upswing after hitting a recent low in Q2’23. And funding to store tech companies more than doubled quarter-over-quarter (QoQ) in Q4’23.
Using CB Insights data, we dug into these and other key data points across the retail tech landscape. Below, we cover:
- Quarterly equity funding picks up
- More $100M+ mega-rounds and the top deals of the quarter
- A mixed bag for dealmaking in Asia
- Momentum for M&A and IPOs
- Key retail tech sectors mature
- Looking ahead
Quarterly equity funding picks up
Retail tech funding rose 15% in Q4’23 to $4.7B. The rebound put a stop to 8 straight quarters of decline.
On a quarterly basis, the funding rebound set retail tech apart from the broader venture market, which saw funding decline 24% QoQ.
However, retail tech deals declined by 18% QoQ in Q4’23, bringing the count to 489 — the lowest quarterly level since 2014.
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