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Startup funding this time was the lowest in the last 5 years, only 2 Unicorns were included in this list.
How bad this year has proved to be for the Startup Ecosystem can be gauged from the latest reports related to funding. In the third quarter of 2023 i.e. July-September, startups have received the least funding in the last 5 years. According to market intelligence firm Tracxn, startups have received funding of only $1.5 billion during this period. If we talk about the same period last year, then on year-on-year basis, there has been a decline of about 54 percent in Startup Funding. There has been a decline of about 29 percent in funding as compared to the previous quarter.
According to Tracxn- India Tech Quarterly Funding Report, if compared with the same quarter last year, there has been a decline of 33 percent in last-stage funding rounds. At the same time, there has been a decline of 74 percent in early-stage funding. Apart from this, there has been a decline of 75 percent in seed-stage funding. In the third quarter of this year, there have been only 5 funding rounds which were larger than $100 million. Companies like Perfios, Zepto, Ola Electric, Ather Energy and Zyber 365 have been involved in this. Among these, Perfios has received the highest funding of $229 million in the Series D round.
Only 2 Unicorns Were Created In The Third Quarter
Only 2 unicorns were added in the third quarter. One of them is Zepto and the other is Web3 and AI based OS Zyber 365. If compared with last year, there is a decline of about 50 percent in this number. Neha Singh, co-founder of Tracxn, says that despite the challenges of the funding winter, India has been the fifth country to receive the most funding in the third quarter of 2023. As of now, India is at fourth place in terms of total startup funding.
Strong Growth Seen In Fintech Sector
Due to increasing acceptance of UPI in the domestic and international markets, the fintech sector has achieved a growth of about 68 percent as compared to the previous quarter. Apart from this, there have been 33 acquisitions in this quarter, which is 13 percent less as compared to last year’s quarter.
Funding Doubled In A Month
Tracxn co-founder Abhishek Goyal says that there has been a huge growth in funding on a month-on-month basis. In August 2023, startups had received funding of $376 million, while in September the startup funding figure increased by nearly 91 percent to $720 million.
Bengaluru has been the leader in terms of raising funding in the third quarter. After this, Mumbai is at second place and Noida is at third place. Accel, Blume and Peak XV Partners have been on top among the investors in the third quarter of 2023. IPV, 100X.VC and Titan Capital lead the seed investors, while early stage investors include Elevation, Tiger Global Management and Accel.
