VC funding for Indian startups drops 70% to $5.48 bn in January-June

VC funding for startups in India has dropped more than 70 percent to $5.48 billion in the January-June period from $19.5 billion a year ago, according to Tracxn.
VC funding for techThe startup ecosystem had 546 deals in the first half this year, a significant drop from the total number of rounds at 1,570 in the same period last year.

The seed rounds saw $349 million investments (383 deals), early stage deals saw $1.36 billion (123) and late stage deal rounds, $3.77 billion (40 deals).

In comparison, the first half of 2022 had logged seed-round investments at $1.08 billion, early-stage rounds at $5.08 billion and late-stage funding at $13.1 billion in total.

In H1 2023, the leading investors were IPV and Y Combinator and the largest funding round (in April) was reported by edtech unicorn Byju’s at $700 million.

Leading sectors were consumer ($1.81 billion), fintech ($1.41 billion) while Bengaluru topped the city chart with $2.87 billion investments in startups.

In the first quarter of this year, Indian startups raised a total of $2.8 billion, 75 percent lower compared to the same period in the previous year ($11.9 billion).

The funding volumes contracted due to the reduction in late-stage funding, which declined by 79 percent in the first quarter ($1.8 billion) compared to Q1 2022.

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