Indian Startup Funding Takes a Dip of 67.1% to $6.3 Billion in Jan-Oct 2023, Reports GlobalData

Indian Startup

In the span of January to October 2023, a total of 920 venture capital (VC) funding deals were made in India, marking a decline of 38.6% compared to the 1499 VC deals in the same period of 2022, as per a report by GlobalData.

The accompanying VC funding value witnessed a substantial drop of 67.1%, decreasing from $19.2 billion in January-October 2022 to $6.3 billion in January-October 2023, according to the data and analytics company.

Aurojyoti Bose, the Lead Analyst at GlobalData, expressed, “The year 2023 has posed challenges for Indian startups seeking VC funding, with investors becoming more cautious, particularly due to concerns surrounding several homegrown startups like Byjus.

The significant decrease in funding indicates that VC firms are refraining from large investments, and securing capital for startups is proving to be a tough task in the current scenario.”

Despite these challenges, India maintains its position among the top five global markets for VC funding activity, contributing to 5.4% of the total number of VC funding deals announced worldwide during January-October 2023.

Its share of the corresponding disclosed deal value stands at 3.1%. Moreover, India holds a significant position in the Asia-Pacific (APAC) market, standing just behind China in terms of both VC funding deal volume and value.

An analysis of GlobalData’s Financial Deals Database disclosed that despite the subdued investor sentiments, India witnessed the announcement of several VC funding rounds surpassing $100 million in 2023.

Some noteworthy VC funding deals during January-October 2023 include PhysicsWallah raising $250 million, Perfios Software Solutions securing $229 million, PhonePe obtaining $200 million, Zepto receiving $200 million, and Zetwerk raising $120 million.

Aurojyoti Bose concluded, “The ability to secure substantial funding rounds exceeding $100 million reflects a resilient entrepreneurial spirit, demonstrating the enduring appeal of Indian startup ecosystem, even in the face of cautious investor sentiment.””

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