Funds drying up for startups; plunge by 33% in Q2FY22

Bengaluru, July 7 (KNN) The Indian startup funding plumed by 33 per cent to USD 6.9 billion in the April-June period (Q2), from USD 10.3 billion in the first quarter (Q1) this year.

According to the report by Tracxn Technologies, the drop in the funding comes amidst the economic meltdown and layoffs in the funding winter.

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

In Q2, 121 new startups closed their first funding rounds, four startups turned unicorns, 62 startups got acquired, and five filed their IPOs, according to data by Tracxn Technologies.

Metropolitan cities like Delhi, Mumbai and Bengaluru are at the forefront in attracting investments.

The Indian startups raised a sum of USD 6.9 billion in Q2 in 409 funding rounds and the top startups were VerSe, Delhivery and udaan.

"We aim to give industry stakeholders key insights of the ecosystem that would help in business decision making that is backed by extensive market intelligence and thorough research and data analysis, " said Neha Singh, Co-Founder, Tracxn.

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

Top sectors to receive funding between April and June were Social Platforms, internet first media, payments, B2B e-commerce and e-commerce enablers.

While 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.  (KNN Bureau)