Immediately, India is understood globally for its vibrant startup ecosystem, which is the world’s third largest. However like the remainder of the world, the nation’s startups have been grappling with a ‘funding winter’. Solely two startups attained unicorn standing — a valuation of $1 billion – final 12 months.

A brand new report brings out the persevering with downward pattern in funding, as buyers stay extra cautious and selective, whilst India remained the fourth largest enterprise market on the earth in 2023.

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Some highlights

  • Enterprise capital investments shrank extra sharply in India, dropping to $11 billion in 2023 — one-fourth of the $42 billion determine in 2021.
  • Indian enterprise funding in startups has dropped to pre-2017 ranges, with each the entire worth of offers in addition to the variety of offers having dropped by over 60 per cent.
  • The drop is steeper for late-stage funding, which shrank by 82 per cent since 2021. Seed funding has additionally halved.
  • On the seed stage, each deal depend and funding are happening.
  • The unicorn is dying — the variety of startups that attained unicorn standing dropped from 45 two years in the past to simply two in 2023. The unicorn versus IPO depend has reversed, with little late-stage funding coming in, startups wish to go IPO early.
  • 2021’s main late stage buyers at the moment are holding again.

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