VC funding drops 33% to $6.9 bn in Indian startups in April-June

The VC funding in the Indian startups has dropped 33 percent to $6.9 billion during April-June (Q2) against $10.3 billion in the first quarter (Q1) this year, according to data intelligence platform Tracxn Technologies.
VC funding for tech
In Q2, 121 new startups closed their first funding rounds, four startups turned unicorns, 62 startups got acquired, and five filed their IPOs.

The Indian startups raised $6.9 billion in Q2 in 409 funding rounds and the top startups were VerSe ($805 million), Delhivery ($304 million), and udaan ($275 million).

They were followed closely by ShareChat ($255 million) and upGrad ($225 million).

Bengaluru, Delhi, and Mumbai are the top cities attracting the maximum investments.

With Leadsquared, Purplle, PhysicsWallah, and Open becoming new unicorns, the total valuation of unicorns escalated to $31.8 billion in Q2.

eMudhra, Delhivery, Handicrafts village, Eighty Jewellers, and Veranda Learning Solutions filed for IPOs. Blinkit (By Zomato), Whiteteak (By Asian Paints), and MyHQ (By ANAROCK) were the top acquisitions in the second quarter.

Social Platforms, internet first media, payments, B2B e-commerce and e-commerce enablers are the top sectors receiving the most VC funding from investors between April and June.

The total VC funding in Q2 witnessed a decline in comparison to the same quarter last year (Q2 2021), where the total funds raised were $10.1 billion.

IPV and Blume Ventures topped the investment charts in seed-stage startups. Sequoia Capital and Accel ranked highest in the early-stage startups funding standing.

Sofina and DST Global are the leading late-stage institutional investors.