As we enter 2023, Anup Jain, Managing Partner, Orios Venture Partners spoke to businessline about the expected trends in the start-up ecosystem for the new year. Excerpts:
How long do you expect the funding winter to continue? Do you expect more upheaval in the start-up ecosystem in 2023?
Funding winter in late stages will continue from large global funds but new sources of capital, including CVCs (corporate venture capital) and sovereigns will increasingly place their bets at the right valuations.
Which sector do you expect to be impacted the most next year and which ones would fare better?
Certain sectors like K-12 Edtech, Vertical E-commerce, Payments, and broad-based SME lending will see consolidation, and sectors like Fintech, Climate, and Sustainability, Electric Mobility, Upskilling Edtech beyond K12, health, agriculture, and insurance will fare better as India’s largest age-old problems will get addressed through tech-enabled data-driven models.
What are some broad start-up ecosystem-related trends that you expect to see in 2023?
Founders will grow in average age from yesteryears, we will see more women and Tier 2/3 founders joining the ecosystem. I also expect more corporates to participate in investments seeking innovations and more global funds will be setting up shop in India.
Overall, India will continue to receive unfair interest in both public markets and private markets owing to its intrinsic growth versus the global recessionary situation. Further, with investments in China taking a back seat even further, India will be the sole large market that is more attractive than ever before.