Retail tech investment activity continues to slow down in Q3'22 as quarterly funding sinks 33% quarter-over-quarter.
Retail tech companies raised $8.5B in Q3’22, the lowest quarterly amount in 5 years. Deals ticked up by 5% quarter-over-quarter (QoQ) to 776.
Investors are making smaller bets: funding from mega-rounds ($100M+ deals) dropped 38% QoQ. And only 3 new retail unicorns emerged in Q3’22, down from 13 births in Q2’22. The new unicorns are India-based fulfillment management tech company Shiprocket (valued at $1.3B), Thailand-based food delivery company LINE MAN Wongnai (valued at $1B), and Italy-based omnichannel payments platform Satispay (valued at $1B).
Below, check out a few highlights from our 127-page, data-driven State of Retail Tech Q3’22 Report. For deeper insights, all the record figures, and a boatload of private market data, download the full report.
Q3’22 highlights across the retail tech ecosystem include:
- The top 3 most active investors in Q3’22 invested in 38% fewer companies than the top 3 in Q2’22.
- Europe led in mega-round funding, with $1.5B spread across 3 deals. In Asia, the number of mega-round deals collapsed 81% from its peak in Q3’21.
- E-commerce was the only sector with a funding increase (10%), with investment reaching $4.6B across 372 deals in the quarter.
- Supply chain & logistics tech funding fell by 57% QoQ. Deals were concentrated primarily in the US and Asia.
- In 2022 so far, early-stage deals are making up a higher share of retail tech deals (64%) than they did in 2021 (60%).
Download our Q3’22 State of Retail Tech Report to learn more about all these trends and more.If you aren’t already a client, sign up for a free trial to learn more about our platform.