BENGALURU: The funding winter in India’s startup ecosystem persists. Startups in India have raised $6.9 billion across 1,013 venture capital (VC) funding deals during January-November 2023. This is a 65.8% drop in terms of value when compared to the $20.2 billion it raised during the year-ago period, a report by data and analytics company GlobalData said.
This reflects how global startups are grappling with a prolonged funding winter and mature markets like the US are no exception.The US startup ecosystem saw 6,307 VC deals worth $104.5 billion during the January-November period, GlobalData’s report showed. This represents a decline of 42% year-on-year in terms of deals volume and a decline of 44% in terms of deals value.
India accounted for 5.5% of the total number of VC funding deals globally during the period, while its share of the corresponding disclosed deal value stood at 3.1%. Some of the top VC funding deals include $250 million fundraising by PhysicsWallah, $229 million raised by Perfios Software Solutions, $200 million by PhonePe, $200 million by Zepto, and $120 million worth funding raised by Zetwerk.
An analysis of GlobalData’s Financial Deals Database showed that VC funding in terms of deal volume dropped 38.4% to the 1,644 VC deals during the January-November time frame. Interestingly, it took only four months for India to surpass the $10 billion mark in total VC funding value last year.
Aurojyoti Bose, lead analyst at GlobalData, said, “VC funding activity declined both in terms of volume and value, but the more prominent decline in terms of value suggests the prevailing harsh funding winter. The havoc funding winter has created in India in 2023 is also evident from the fact that the total VC funding value is yet to touch the $10-billion mark.” He said, “Nevertheless, startups are aware that VC firms continue to see India as an attractive market, and they will not mind placing bets in promising companies.”
This reflects how global startups are grappling with a prolonged funding winter and mature markets like the US are no exception.The US startup ecosystem saw 6,307 VC deals worth $104.5 billion during the January-November period, GlobalData’s report showed. This represents a decline of 42% year-on-year in terms of deals volume and a decline of 44% in terms of deals value.
India accounted for 5.5% of the total number of VC funding deals globally during the period, while its share of the corresponding disclosed deal value stood at 3.1%. Some of the top VC funding deals include $250 million fundraising by PhysicsWallah, $229 million raised by Perfios Software Solutions, $200 million by PhonePe, $200 million by Zepto, and $120 million worth funding raised by Zetwerk.
An analysis of GlobalData’s Financial Deals Database showed that VC funding in terms of deal volume dropped 38.4% to the 1,644 VC deals during the January-November time frame. Interestingly, it took only four months for India to surpass the $10 billion mark in total VC funding value last year.
Aurojyoti Bose, lead analyst at GlobalData, said, “VC funding activity declined both in terms of volume and value, but the more prominent decline in terms of value suggests the prevailing harsh funding winter. The havoc funding winter has created in India in 2023 is also evident from the fact that the total VC funding value is yet to touch the $10-billion mark.” He said, “Nevertheless, startups are aware that VC firms continue to see India as an attractive market, and they will not mind placing bets in promising companies.”