Funding to Indian startups plunge 75% in Jan-Mar qtr, Delhi gains among cities The number of venture capital

Key Highlights :

1. The global funding winter has hit Indian startups hard with funding plunging 75% to $2.8 billion in the January-March period compared to $11.6 billion in the corresponding period last year.

2. A rise in inflation and tightening of easy money by central banks globally has significantly impacted investments with funding falling 24% in the period on a sequential basis as against a close to 9% rise in the prior quarter.

3. Tracxn’s report uses the calendar year for its analysis.

4. No unicorns were created either in this quarter, though India was the second-highest funded country after the United States.

5. The startup ecosystem generated fourteen unicorns in the year-ago period.

6. Among startups, PhonePe’s $0.7 billion Series D fund raise led the show.

7. Lenskart, Mintify, Insurance Dekho, FreshtoHome foods, TI Clean Mobility and KreditBee were the other startups that managed to raise over $0.1 billion funds in the January-March quarter.

     Funding to Indian startups plummeted to $2.8 billion in the January-March period, a sharp 75% decline from a year ago. No unicorns were created either in this quarter, shows data from Tracxn. The funding slump is a worrying trend as it could lead to a slowdown in the growth of Indian tech startups.

     The number of deals made in the January-March period was down by 73% from a year ago. This is in stark contrast to the $12.8 billion raised during the same period last year. The sharp decline in funding could be due to a number of reasons, including the slowdown in the Indian economy and the demonetisation drive.

     Despite the funding slump, there are still a number of Indian tech startups that are thriving. These companies include Flipkart, Ola, and Paytm. These companies have been able to attract funding from a number of venture capitalists and angel investors. However, the decline in funding could lead to a slowdown in the growth of these companies.

     It is important for Indian tech startups to continue to attract funding as this will help them to grow and become more successful. However, the decline in funding could lead to a slowdown in the growth of these companies.

Continue Reading at Source : livemint