Indian start-ups raise $3 bn in Q3, witness 57% drop from Q2

New Delhi, Oct 11 (KNN) The Indian start-ups raised USD 3 billion in the third quarter (July-September period) this year, witnessing a dip of 57 per cent as compared to the previous quarter (Q2) of 2022, a report showed on Tuesday.

The report further states that the Indian start-ups nosedived a massive 80 per cent (year-on-year) in Q3, with the late-stage funding seeing the biggest fall.

The average ticket size also witnessed a drop across all funding stages, with the late stage seeing the biggest fall of over 70 per cent, from USD 142 million in Q3 2021 to USD 42 million in Q3 2022.

This show that investors are not willing to make large investments until economic conditions stabilise, reports market intelligence platform Tracxn.

Neha Singh, Co-Founder of Tracxn, said, "India is currently experiencing a funding slowdown which is expected to continue for the next 12-18 months and the effects of the funding slowdown are expected to intensify going forward.”

"To add to their woes, the recent energy crisis in the UK and Europe and also the sliding GBP and EUR have increased the likelihood of a global recession," Singh added.

Amongst the sectors that performed well, the Genomics sector in India saw maximum investor interest in Q3, receiving over USD 231 million in funding, which is higher than the total funding received in the year 2021.

The five companies that raised funding rounds of more than USD 100 million in the quarter were EarlySalary, 5ire, InsuranceDekho, OneCard, and BookMyShow, with the most active investors being Better Capital, Venture Catalysts and Surge.  (KNN Bureau)