July 11, 2023
1 min read

Indian startup ecosystem faces tough time

Fintech, Software-as-a-Service (SaaS) and direct-2-consumer (D2C) continued to be the most funded sectors…reports Asian Lite News

The Indian startup ecosystem reported the lowest six-month funding in the last four years, in the first half of this year at $3.8 billion across 298 deals — a decline of nearly 36 per cent as compared to the second half of 2022 ($5.9 billion), a report showed on Sunday.

Fintech, Software-as-a-Service (SaaS) and direct-2-consumer (D2C) continued to be the most funded sectors, according to the PwC India report.

Growth and late-stage funding deals accounted for 84 per cent of the funding activity in the January-June period. These represented 43 per cent of the total count of deals in this period.

The average ticket size in growth-stage deals was $19 million and late-stage deals was $52 million, said the report.

“There is a slowdown in startup funding despite significant untapped capital reserves held by venture capitalists (VCs). Active VC firms in India have secured new funds in the past year and we can expect the pace of investments to pick up in the next few months,” said Amit Nawka, Partner, Deals & India Startups Leader, PwC India.

In the interim, there has been an increase in the due diligence being carried out by investors before making investments, both in terms of detailing as well as coverage, he added.

Early-stage deals accounted for 57 per cent of the total funding in H1 CY23 (in volume terms). In value terms, early-stage deals contributed to approximately 16 per cent of the total funding but was at its lowest as compared to the previous two years.

Bengaluru, Delhi-NCR, and Mumbai continue to be the key start-up cities, representing around 83 per cent of the total startup funding activity.

ALSO READ: Forbes unveils MENA’s Trailblazing Women in Tech

Previous Story

Evernote moves ops to Europe

Next Story

Gavaskar disappointed with Rohit’s captaincy

Latest from Economy

Pakistan in the Dark: Power Crisis Boils Over

Regular power outages are a fact of life in Pakistan, but recent developments suggest that the situation is escalating to new extremes….writes Nasir Khattak In early January 2025, a nerve-breaking power outage

Gita Gopinath to Exit IMF in August

The IMF’s Managing Director Kristalina Georgieva confirmed Gopinath’s departure and said a successor will be named “in due course.”…reports Asian Lite News Gita Gopinath, the First Deputy Managing Director of the International

India–EFTA Trade Deal Gets Swiss Nod

Switzerland Ratifies Landmark EFTA-India Trade Pact, Paving Way for $100 Billion Investment…reports Asian Lite News Switzerland has ratified the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade

Mizoram nails SDG goals

Mizoram has emerged as a frontrunner in India’s sustainable development journey, with all 11 of its districts earning ‘Front Runner’ status in the NITI Aayog North Eastern Region SDG Index 2023–24….reports Asian

US Tariffs Pushed to August Amid Talks

In April, Trump announced a base tariff of 10 per cent on most of America’s trading partners and thereafter additional duties ranging up to 50 per cent….reports Asian Lite News US President
Go toTop

Don't Miss

Japanese firm Mixi to empower startups

With his fund, the company aims at empowering early-stage entertainment

Peak XV to empower Indian startups

“Indian investment managers are trusted globally and we will see