Funding Fables: 2023's Startup Journey of Highs, Lows, and Resilience

Indian startups faced a significant funding downturn in 2023, with a 72% drop compared to the previous year

Late-stage startups were most affected, experiencing a 70% decline in capital raised

Funding challenges were pervasive across all stages, with early-stage and seed-stage startups also seeing significant reductions in funding

Despite the challenges, a total of 97 funds were raised in 2023, totaling $158 billion.

E-commerce emerged as the dominant sector for funding rounds, with Bengaluru-based startups leading the way

Top-funded late-stage startups included PhonePe, Lenskart, and Udaan, while top-funded early-stage startups included Insurance Dekho and Sarvamai.

Startups achieved unicorn status faster in 2023, with the average duration decreasing to 55 years.

India ranked third globally in the number of unicorns birthed, with 15 public listings

Only two new unicorns emerged in 2023, accompanied by a decline in acquisitions

Profitability became a priority for 23 unicorns, setting the stage for IPOs in the future