From Boom to Bust: Indian Startup Funding Falls 77% in Just One Year

Indian startup funding has plummeted by 77% in the first seven months of 2023 compared to same period in 2022, says a report by Venture Intelligence.

The number of deals recorded so far is 344 only which was 822 in July 2022.

Industry watchers have warned of potential overvaluation of certain major startups, adding to the complexity of the situation

Growth and late-stage investments have also seen a sharp drop, with startups raising $ 37 bn across 146 deals till July 2023, compared to $ 12.4 bn raised across 272 deals in the same period in 2022.

Peak XV Partners (previously Sequoia India) was the leading investor, engaging in 21 deals during the first seven months of 2023

Veritas Finance, an NBFC (non-banking financial company), raised USD 146 million from Multiples PE, Avendus PE, and IFC in July

The substantial decline in funding for Indian startups is causing concern among industry stakeholders, and cautionary warnings from industry leaders about the potential overestimation of the internet market add further complexity to the situation