India's startup funding trend mirrors global decline, witnesses 72% drop in H1 2023:Report

New Delhi, July 7 (KNN) The Indian startup ecosystem witnessed a 72 per cent decline in funding in H1 2023 compared to H1 2022, according to a report by Tracxn.

The report titled India Tech semi-annual report 2023 showed that a total funding in January to June period (H1 2023) was about USD 5.5 billion, much lower than the USD 19.7 billion in the first half of 2022.
In the first half of the 2023, the early-stage round funding also witnessed a decline of 44 per cent compared to previous half-year.

When compared to the USD 7.3 billion funding in H2 2022, the funding value saw a 24 per cent decline in the last six months. It is not just the funding value, but the funding rounds have also declined from about 1,586 in H1 2022 to just 536 in the first half of this year, according to the report.

The SaaS-based market intelligence platform found out that the top sectors that attracted the most funding included environment tech, fintech, and retail.

“The retail sector enjoyed the boom of e-commerce in tier two and tier three cities, making it one of the top achievers. This boom has provided a national and international market to the MSMEs. Similarly, the adoption of digital payments has strengthened the fintech sector,” it said.

Bengaluru was the preferred area receiving the highest amount of funding, followed by Delhi-NCR and Mumbai. 100X.VC was the top seed investor during this period, while Peak XV Partners, Accel, and Athera were the active late-stage investors.
KNN Bureau