New Delhi, Mar 9 (KNN) During the month of February, funding into Indian startups reported a 38 per cent fall with only USD 598 million in total deals size recorded as compared to quarter-on-quarter to USD 962 million in January.

According to the data shared by private investment tracker Tracxn, the number of deals also declined to 67 funding rounds in February compared to 84 in the previous month.

Since Q4FY21, deal volumes have dipped continuously as venture capital and private equity investors turn cautious on dealmaking with the economy slipping into the red.

Indian startups raised USD 3.5 billion across 312 rounds in Q4FY22, a 68 per cent year-on-year decline compared to Q4FY21 when startups raised a whopping USD 11.25 billion across 726 rounds.

Financial year 2020-21 was an anomaly for both Indian and global startups which raised record funding with some quarters breaching the USD 10-billion mark.

However, by FY22, investors have cut back deal sizes as investors turned wary about rising inflation, tech stocks meltdown, ongoing war in Russia, and fears of recession.

Despite the ongoing funding slowdown, February had at least three funding rounds above USD 100 million from InsuranceDekho, FreshToHome, and PhonePe.  (KNN Bureau)