Indian startups witnessed a 65.8% drop in funding in terms of value between January and November 2023, according to a report by Times of India.
Citing data from GlobalData, Indian startups raised $6.9 billion across 1,013 venture capital (VC) funding deals in the past 11 months this year. Last year, the startups had raised $20.2 billion in the same period.
Venture Capital funding in India plunges over by 67% during Jan-Oct this year: GlobalData
Among the top VC funding deals in Indian startups this year were- $250 million fundraising by PhysicsWallah, $229 million raised by Perfios Software Solutions, $200 million by PhoinePe, $200 million by Zepto, and $120 million worth of funding raised by Zetwerk. Besides, the year saw just 17 investments of $100-million-plus funding, against 55 in the previous year.
Last year, Indian startups secured more than $10 billion mark in VC funding in just four months.
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In the US startup ecosystem, 6,307 VC deals were signed worth $104.5 billion this year, the data mentioned. Globally, India accounted for only 5.5% of the total number of deals during the period. An analysis of GlobalData’s Financial Deals Database showed that VC funding in terms of volume dropped 38.4% to 1,644 VC deals between January and November time frame.
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While Bengaluru, Mumbai and Delhi-NCR continued to attract significant funding, these startup hubs, too, saw a decline.
The unicorn tally also shrank significantly in India. Just two new ones—Incred and Zepto, unicorns have been created in the year so far, compared with 24 in 2022.
With a total funding of less than $10 billion received for tech startups this year, India has slipped one notch to fourth place among the highest-funded tech startup geographies globally in 2023.
India had been at the third rank the previous two years. The country now accounts for almost 4% of the global fundraising, while China, which secured the third spot, had a 6% share.
