VC Funding For Startups In India Falls 30% To About $24 Billion in 2022

Venture capital funding of startups India Compared to the record high in 2021, there is a 30 per cent decline in 2022. Startups received $23.95 billion this year till December 28, compared to $35.46 billion last year. Economic Times Report crediting data from Venture Intelligence.

As investors become more cautious amid rising interest rates and recession fears, funding for late- and growth-stage startups has slowed. Series-D and above funding to decline from $24.91 billion in 2021 to $11.70 billion in 2022. The number of late-stage deals fell from 177 to 122.

Pankaj Naik, Co-Head (Digital & Technology Investments) said, “This year, not many startups have raised (capital) as they are all hoping to increase their future valuations and be priced at a premium. want to recive.” Banking) at Avendus Capital, as per at Report good.

However, early-stage startups remain competitive. Growth-stage funding, Series B and C, were flat in 2021 at $6.84 billion with 221 deals, compared to 231 deals at $6.82 billion. and $665 million by Byju’s.

“Areas that will weather the storm; Well, it’s going to be a function of the nature of the business. Sectors that are trying to become overly dependent on customer acquisition, with very high customer acquisition costs, will face headwinds. Businesses having long-term positive trends in ARPU and installed market size will be the flavor of the season,” said Ashish Fafadia, Partner, Bloom Ventures. at Report good.

Sequoia Capital India did the most deals this year with 73 transactions, which was, however, lower than the 110 deals done in 2021. The highest number of deals were recorded in the e-commerce and fintech sectors. In 2023, investors will focus more on profitability and fundamentals.

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