Funding for Indian startups in H1 2023 has dropped to its lowest level in four years, reaching $3.8B. This figure represents a YoY 36% decrease compared to 2022, when funding reached $5.9B. The three most funded verticals across the 298 funding deals made in H1 were: Software as a Service, Direct-to-Consumer, and Fintech. - Entrepreneurs in the Indian startup ecosystem have blamed the funding winter on rising inflation, which has caused their valuations to drop significantly, thus making it impossible for them to raise rounds at their previous valuations.
- Investors claim that early-stage startups have been less impacted, but they are more pressured to create a quicker path toward profitability.
|
