The venture capital funding value in Indian start-ups has plummeted by over 50 per cent in the January-October period, according to data and analytics company GlobalData.
The data showed a 38.6 per cent decline in VC funding deals to 920 deals during the time period as compared to 1,499 deals in the year-ago period.
The corresponding VC funding value plummeted by 67.1 per cent to $6.3 billion during January-October 2023 from $19.2 billion a year ago, according to the report.
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“2023 so far has been a challenging year for Indian start-ups seeking to secure VC funding as investors go slow on deals with growing concerns around several homegrown start-ups such as Byjus. The massive fall in funding value indicates that VC firms are cutting down on big investments and raising capital in the current scenario is not easy for start-ups,” said Aurojyoti Bose, Lead Analyst at GlobalData.
India on top
However, India continues to rank among the top five markets for VC funding activity globally. India accounted for 5.4 per cent of the total number of VC funding deals announced globally during January-October 2023 while its share of the corresponding disclosed deal value stood at 3.1 per cent.
It is also a key APAC market and stands just next to China in terms of both VC funding deal volume and value.
India managed to see the announcement of some VC funding rounds worth more than $100 million in 2023, according to Global Data’s financial deals database.
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Some of the notable VC funding deals announced in India during January-October 2023 include $250 million fundraising by PhysicsWallah, $229 million worth of funding raised by Perfios Software Solutions, $200 million fundraising by PhonePe, $200 million worth of funding raised by Zepto, and $120 million worth funding raised by Zetwerk.
“The ability to secure noteworthy funding rounds exceeding $100 million signals a resilient entrepreneurial spirit, showcasing the enduring attractiveness of India’s start-up ecosystem, even amid cautious investor sentiment,” added Bose.