Indian Tech Startup Funding Report (H1 2023) Inc42

INDIAN TECH STARTUP
FUNDING
REPORT
H1 - 2023
© INC42 MEDIA | NOT FOR DISTRIBUTION / 2
Table Of Contents
India’s Digital Economy . . . . . . . . . . . . . . .................................................................. 03 Mergers & Acquisitions ................................................. 27
India’s Startup Economy . . . . . . . . . . . . .................................................................. 04 Deal Count Trends

H1 2023 Sectorwise Split
YoY Funding Amount & Deal Count: 2014 To H1 2023 ....................................... 05
H1 2023 Hubwise Split
Half Yearly Funding Amount & Deal Count Trends [H1 2014 To H1 2023} ............... 06
Investor Ecosystem ..................................................... 30
Funding Amount & Deal Count
Half Yearly Investor Participation Trends
Mega Deal Count
Most Active Investors H1 2023
Average Ticket Size
H1 2023: Startup Investments & Investors ....................................................... 14 Indian Startup Investor Sentiment Survey H1 2023 ............. 40
Top 10 Funding Rounds

Sectorwise Analysis
Funding Stagewise Analysis
Startup Hubwise Analysis
India’s Digital Economy In A Nutshell
1,500
1.3 Bn+ 61% 44%
1,343
1,310
Internet Users Internet Penetration Increase In Internet
1,273
1,132
By 2030 In India Users From 2022 To
1,186
2030
1,134
1,000
1,075
Internet Users (Mn)
1,008
932
$0.17 4.7 Hours 600 Mn+

846
749
Per GB Internet Average Hours Spent Number Of

Cost On Mobile Per Day Smartphone
Per User Users
500
$3.4 Tn 350 Mn+ 373 Mn+

Total Value Of Number Of Users Estimated Rural
UPI Transactions Transacting Internet Users In
0 Up to May 2023 Online 2022
2020 2021 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F
Source: TRAI, NPCI, Bain & Company, Data.ai

Indian Startup Funding & Deals Landscape

STARTUP FUNDING M&AS & EXITS UNICORNS & SOONICORNS
$141 Bn+ 1.2K 108

Total Funding Total Deal Count Indian Unicorns
5.3K+ 6 Bn+ 106

Unique Funded Startups Spent On M&As Indian Soonicorns
$5.9 Bn 18 $345 Bn
Total Seed Stage Funding Total Startup IPOs Combined Valuation Of Indian Unicorns
$34 Bn 22 $34 Bn
Total Growth Stage Funding Upcoming Startup IPOs Combined Valuation Of Indian Soonicorns
Source: Inc42
Note: Based on Indian startup funding recorded between 2014 and H1 2023
Indian Startup Funding & Deals Landscape
H1 H2 H1
2023 2022 2022
Total Funding $5.4 Bn $6 Bn $19 Bn
Total Deals 462 617 900
Average Ticket Size $3.5 Mn $3 Mn $4 Mn
Mega Deals ($100 Mn & Above) 14 9 49
No. Of M&As 67 75 164
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
$141 Bn+ Raised By Indian Startups Since 2014

The deal count and unique startups funded during the period was 9.5K+ and 5.3K+ respectively
50 2,000
1,584
40 1,517
1,500
42
Funding Amount ($ Bn)
30
1,045
983 996
DEAL COUNT
953 1,000
832 812
20 25
462
376 500
10
13 12 13 12
9
5 5
0
5.4 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 H1 2023
FUNDING AMOUNT ($ BN) DEAL COUNT

Source: Inc42
Startup Funding Drops 72% YoY In H1 2023

The global recession and concerns surrounding startup business models have had a significant impact on startup funding in the
first half of 2023
20.0 1000
15.0 750
Deal Count
10.0 500
5.0 250
0.0 0
H1- 2014 H1- 2015 H1- 2016 H1- 2017 H1- 2018 H1- 2019 H1- 2020 H1- 2021 H1- 2022 H1- 2023
Funding Amount ($ Bn) Deal Count
Source: Inc42
Indian Startup Funding Fails To Pick Pace

Compared to H2 2022, startup funding amount and deal count plunged 10% & 25% respectively in H1 2023
40 1,000
30 750
Deal Count
20 500
10 250
0 0
H1-2020 H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023

Source: Inc42
June Emerged To Be The Worst Month For Startup Funding In 2023

The months of January and March stood out as the top performers, accounting for a combined 48% of the total funding re-
ceived by Indian startups in the first half of 2023
1.5 100
75
1.0
Deal Count
50
0.5
25
0.0 0
Jan 2023 Feb 2023 Mar 2023 Apr 2023 May 2023 June 2023
Source: Inc42
Indian Startup Funding In H1 2023: Deal Size Wise Classification
$1 Bn and above
0
1 $500 Mn to <$999 Mn
IN THE FIRST HALF OF

3 $250 Mn to $499 Mn
2023, ONLY 4% OF THE
DISCLOSED FUNDING
DEALS REACHED THE
10 $100 Mn $249 Mn
MEGA DEAL THRESHOLD
OF $100 MN OR ABOVE.
THIS REPRESENTS A
7 $50 Mn to $99 Mn
DECREASE FROM THE 6%
SHARE OF MEGA DEALS
27 $25 Mn to $49 Mn OBSERVED IN H1 2022.
52 $10 Mn to $24 Mn
264 Under $10 Mn
Source: Inc42
Note: Only deals with disclosed funding amount are included in the analysis | Note: H1 2023 data is for the period between 1st January and 27th June 2023
Women Led Startups: 88% Decrease In Capital Inflow In Women Led Startups In H1 2023
H1 H1 H1
2023 2022 2021
Total funded startup 62 140 95
% total funded startup 13% 17% 16%
Total capital Inflow $289 Mn $2.4 Bn $1.4 Bn
% total capital inflow 5% 13% 14%
Top funded sector Ecommerce Ecommerce Ecommerce
Top startup hub Delhi NCR Bengaluru Delhi NCR
Source: Inc42
Mega Deal Count Takes A Massive Hit In H1 2023

Compared to H2 2022, the number of mega deals (valued at $100 Mn or above) increased by 55%. However, when looking at the
YoY comparison, such deals witnessed a significant decline of 71%
80
60
Mega Deal Count
40
20
0
H1-2020 H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023
Source: Inc42
Median Ticket Size Shows Signs Of Recovery

On a YoY basis, median ticket size of investment dropped by 13% in H1 2023
4
Median Ticket Size Of Funding Amount ($ Mn)
0
H1-2020 H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023
Source: Inc42
Top 10 Indian Startup Funding Rounds Of H1 2023
Sector Funding Stage Round Size ($ Mn)
Fintech Late Stage $850 Mn
Ecommerce Late Stage $600 Mn
Enterprisetech Late Stage $250 Mn
Fintech Growth Stage $187 Mn
Source: Inc42
Indian Startup Funding: Ecommerce & Fintech Remained Top Funded Sectors
In H1 2023
Others
11.1% Ecommerce
0.6 Fintech Others
Media & Entertainment 18.9%
39.6% 21.7% 87
3.1%
0.2 100
Edtech
4.1% 0.2
Consumer Services
0.2 2.1
4.4%
$5.4 Bn Edtech 462
Cleantech 30
0.3 Funding Amount 6.5% Deal Count
4.8%
($ Bn) 85
Cleantech 31
Enterprisetech 0.7 6.7%
Enterprisetech
12.7% Media & 31 18.4%
Entertainment
6.7% 32 65
1.1 Ecommerce Deeptech Fintech
20.2% 6.9% 14.1%
Source: Inc42
Indian Startup Funding: Top 5 Sectors Witnessed Major Drop In Funding

Compared To H1 2022
Funding Amount (H1 2023) YoY Change Deal Count (H1 2023 ) YoY Change
Fintech $2.1 Bn -37% 65 -59%
Ecommerce $1.1 Bn -67% 87 -52%
Enterprisetech $684 Mn -75% 85 -52%
Cleantech $261 Mn -52% 31 -34%
Consumer Services $239 Mn -83% 19 -10%
Source: Inc42
Indian Startup Funding: Bengaluru Remains The Top Funding Hub In H1 2023
Bengaluru Bengaluru
Delhi NCR Delhi NCR
Top 5 Startup Hubs (H1 2023)

Top 5 Startup Hubs (H1 2023)
Mumbai Mumbai
Chennai Hyderabad
Hyderabad Chennai
0.0 0.5 1.0 1.5 2.0 0 50 100 150

Source: Inc42
Top Five Hubs In H1 2023 vs H1 2022: Funding Drops Across Major Indian
Startup Hubs
Funding Amount (H1 2023) YoY Change Deal Count (H1 2023 ) YoY Change
Bengaluru $2 Bn -76% 137 -54%
Delhi NCR $1.8 Bn -54% 113 -52%
Mumbai $714 Mn -76% 79 -42%
Chennai $110 Mn -92% 17 -60%
Hyderabad $76 Mn -83% 17 -54%
Source: Inc42
Indian Startup Funding: Stagewise Outlook [H1 2023]
Total Funding Amount Deal Count Median Ticket Size Top Sector (Deal Count)
Late Stage $3.3 Bn 48 $30 Mn Fintech
Growth Stage $1.4 Bn 93 $10 Mn Ecommerce
Bridge Funding $285 Mn 88 $3 Mn Ecommerce
Seed Stage $479 Mn 233 $1.2 Mn Enterprisetech
Source: Inc42
H1 2023 Witnessed Lowest Late Stage Startup Funding In Six Years

Compared to H1 2022, both funding amount & deal count decreased 72% & 61% respectively. Whereas compared to H2 2022 the
funding amount picked 32% while deal count plunged by 30%
12.0 125
10.0
100
8.0
75
Deal Count
6.0
50
4.0
25
2.0
0.0 0
H1- 2014 H1- 2015 H1- 2016 H1- 2017 H1- 2018 H1- 2019 H1- 2020 H1- 2021 H1- 2022 H1- 2023

Source: Inc42
Debt Funding To The Rescue For Late Stage Startups

Debt funding deals report uptick while other late stage rounds report a decline
SERIES C SERIES D SERIES E DEBT FINANCING

40
34
30
25
DEAL COUNT
20 22 23
18
14
10 13
9 10 10 9
9
7
5 5
0
2
H1-2020 H1-2021 H1-2022 H1-2023 H1-2020 H1-2021 H1-2022 H1-2023 H1-2020 H1-2021 H1-2022 H1-2023 H1-2020 H1-2021 H1-2022 H1-2023
Source: Inc42
Indian Startup Funding: Growth Stage Funding Witnessed 73% Drop In H1 2023
On an YoY basis, the Growth stage is the worst hit among all funding stages
6.0 250
200
4.0
150
Deal Count
100
2.0
50
0.0 0
H1- 2014 H1- 2015 H1- 2016 H1- 2017 H1- 2018 H1- 2019 H1- 2020 H1- 2021 H1- 2022 H1- 2023

Source: Inc42
Series B Funding Deals Plunged 72% In H1 2023

Compared to H1 2022, both Series A & B deal count plunged 57% and 72% respectively
SERIES A SERIES B DEBT FINANCING

150
135
100
98
DEAL COUNT
76
50 61
58
45
36
21 18 6 5
0 11
H1-2020 H1-2021 H1-2022 H1-2023 H1-2020 H1-2021 H1-2022 H1-2023 H1-2020 H1-2021 H1-2022 H1-2023
Source: Inc42
Note: Only deals with disclosed funding stage are included in this analysis | H1 2023 data is for the period between 1st January and 27th June 2023
Indian Startups Raised $285 Mn In Bridge Funding Deals In H1 2023

Compared to H1 2022, the funding amount and deal count plunged 22% & 35% respectively. Whereas compared to H2 2022, the
funding amount showed minor uptick of 1% and deal count witnessed 16% rise
400 150
300
100
Funding Amount ($ Mn)
Deal Count
200
50
100
0 0
H1- 2014 H1- 2015 H1- 2016 H1- 2017 H1- 2018 H1- 2019 H1- 2020 H1- 2021 H1- 2022 H1- 2023
Funding Amount ($ Mn) Deal Count
Source: Inc42
Indian Startups Raised $479 Mn At Seed Stage In H1 2023

Compared to both H1 2022 and H2 2022, the funding amount and deal count plunged massively in H1 2023. The deals dropped by
44% and 27% respectively. While amount wise it was a 66% and 53% decline respectively.
1,500 500
400
1,000
Funding Amount ($ Mn)
300
Deal Count
200
500
100
0 0
H1- 2014 H1- 2015 H1- 2016 H1- 2017 H1- 2018 H1- 2019 H1- 2020 H1- 2021 H1- 2022 H1- 2023
Funding Amount ($ Mn) Deal Count

Source: Inc42
Early Stage Funding Plunged On The Back Of Growing Market Uncertainty

Compared to H1 2022, Pre-Series A & seed funding deal count plunged 32% and 44% respectively
PRE SERIES A SEED FUNDING
400
419
300
DEAL COUNT
273
200 233
166
100
109
83
74
36
0
H1-2020 H1-2021 H1-2022 H1-2023 H1-2020 H1-2021 H1-2022 H1-2023
Source: Inc42
Note: Only deals with disclosed funding stage are included in this analysis
Startup M&As Fail To Pick Pace In H1 2023

Enterprisetech startups made one-third of the total 67 M&As recorded in H1 2023
200
150
M&A Count
100
50
0
H1-2020 H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023
Source: Inc42
Note: BH1 2023 data is for the period between 1st January and 27th June 2023
1 In Every 3 Startup Acquisitions In H1 2023 Was From The Enterprisetech Sector

However, compared to H1 2022, the number of M&As in enterprisetech sector was 43% lower in H1 2023
Others
13.4%
9
Enterprisetech
Media & Entertainment
31.3%
6.0% 4 21
Healthtech
9.0% 6 M&A Deal Count
(H1 2023)
Ecommerce 7
10.4%
13
7 Fintech
Edtech 19.4%
10.4%
Source: Inc42
Note: Based on M&A deals recorded between 1 January and 27June 2023 | Acquiree organisation with international HQ are excluded from this analysis
Bengaluru, Delhi NCR & Mumbai Combined Made More Than 80% Of M&As
In H1 2023
With investor becoming more conservative toward investment this year, many VC-backed startups are looking for exits via
mergers or acquisitions
Others
18.0%
TOP 3 STARTUP M&A COUNT
HUBS
BENGALURU 16
M&A Deal
Count
(H1 2023) DELHI NCR 16
MUMBAI 13
Top Three Startup

82.0%
Source: Inc42
Note: Based on M&A deals recorded between 1 January and 27June 2023 | Acquiree organisation with international HQ are excluded from this analysis
Acquiree organisation with international HQ are excluded from this analysis
Unique Investor Participation In Indian Startups Dips By 51%

The number of unique investors backing Indian startups fell by 54% in H2 2022, and remained on a similar trajectory in H1 2023.
2,500
2,000
1,500
Unique Investor Count
1,000
500
0
H1-2020 H2-2020 H1-2021 H2-2021 H1-2022 H2-2022 H1-2023
Source: Inc42
Top Investor Ranking: H1 2023
Type Total Deal Count Notable Funded Startups
Angel Network/ Platform 100 Samosa Party, BatX, Power Gummies
VC Firm 47 abCoffee, BreatheESG, ColabTools
Venture Debt Firm 45 OneCard,Country Delight, BluSmart Mobility
Venture Debt Firm 32 Lead School, Rebel Foods, Battery Smart
Angel Network/ Platform 30 Sugar Watchers, Sapio Analytics, Kyte Energy
Accelerator/Incubator 29 Zypp Electric, STAGE, TagZ Foods
Venture Debt Firm 22 Rebel Foods, Stashfin, Rooter
Angel Network 21 STAGE, BankSathi, Raaho
Venture Capital Firm 21 The Ayurveda Experience, Navadhan, Attron
Venture Debt Firm 20 Niro, Jumbotail, Stashfin
Note: This ranking is based on data consolidated from Inc42’s Top Indian Startup Investor Ranking Survey, H1 2023 and deals recorded in the Inc42 database
Venture Capital Firm 15 Mad Street Den, Bounce Infinity, Park+
Venture Capital Firm 12 Efeed, MyKare, RACEnergy
Venture Capital Firm 12 Anantadi, 6Degree, OckyPocky
Venture Capital Firm 12 Ripplr, Growfin, HighXP
VC Firm 11 Raaho, Ohm Mobility, STAGE
VC Firm 11 Solar Ladder, Venwiz, Zoplar
Venture Capital Firm 10 Diagna, Adkrity, Ambitio
Venture Capital Firm 10 XYXX, The Whole Truth, Kreo
Venture Capital Firm 10 StepChange, Ohm, Covrzy
VC Firm 9 SigTuple, Fundly.ai, FreeUp
Corporate Venture Capital (CVC) 8 Bonatra, MedySeva, Glamplus, Cureskin, Fasal
Angel Network/ Platform 8 Celcius, Oben Electric, STAGE
Corporate Venture Capital (CVC) 7 MProfit, NOTO, Spectacom Global
Venture Capital Firm 7 Toddle, STAGE, HYPD Store
Venture Capital Firm 7 StepChang, SuperHire, Mindgrove
Venture Capital Firm 6 GoZero, GoDesi, Ugaoo
Venture Capital Firm 6 QB Health Technologies Pvt. Ltd. (Qube Health), Aegeus Technologies
Angel Network/ Platform 6 Mivipro, Nativespecial , Esandhai
Angel Network/ Platform 6 Pando, Kratos Studios, Venwiz
Venture Capital Firm 6 Battery pool, Apnamart, Bizztm
Valuation Adjustments: Indian Unicorns Face Valuation Markdown Headwinds

Current Investor Who Slashed
Markdown Percentage Valuation Post Markdown
Valuation The Valuation
$22 Bn 50% $11 Bn
$22 Bn 62.00% $8.3 Bn
$22 Bn 72.80% $5.98 Bn
$22 Bn 76.80% $5.1 Bn
$10.7 Bn 25% $8 Bn
$10.7 Bn 48.50% $5.5 Bn
$10.7 Bn 32% $7.3 Bn
$10.7 Bn 39.25% $6.5 Bn
$5.6 Bn 21.40% $4.4 Bn
$5.6 Bn 50% $2.8 Bn
$5.6 Bn 52% $2.7 Bn
Source: Reports, Investor Filings

Current Investor Who Slashed

Markdown Percentage Valuation Post Markdown
Valuation The Valuation
$5 Bn 38% $3.1 Bn
$7.4 Bn 35% $4.8 Bn
$3.2 Bn 8.56% $2.9 Bn
$4.9 Bn 9.70% $4.4 Bn
$9.6 Bn 71.8% $2.7 Bn
$1.4 Bn 31.60% $957.6 Mn
Source: Reports, Investor Filings

Funds Worth $3.6 Bn+ Announced For Indian Startups In 2023
Fund Type Fund Type Fund Size Stage Focus Sector Focus
3one4 Capital (Fund IV) VC Fund $200 Mn Early Stage Consumer Internet, SaaS, Fintech
AdvantEdge (Fund III) VC Fund $100 Mn Early Stage EV
Aeravti Ventures Govt Fund $12.1 Mn Early & Growth Stage Deeptech, Biosciences, Agritech, Climate
Agri-Focused Accelerator Fund VC Fund Undisclosed Stage-Agnostic Agritech
Airavat Global Technology Fund R VC Fund $40 Mn Listed Tech Businesses Consumer, Financial Services, Technology & Pharma
Avaana Capital VC Fund $70 Mn Seed To Series Energy Transition & Resource Management
B Capital (Growth Fund III)* VC Fund $2.1 Bn Early Stage Enterprisetech, Fintech, Healthtech, SaaS
B Capital (Healthcare Fund I)* VC Fund $500 Mn Early & Late Stage Digital Health, Biotech
Blume Continuity Fund VC Fund $24.4 Mn Follow On Rounds Consumer Internet, SMB Marketplaces, SaaS
BoldCap VC Fund $25 Mn Early Stage SaaS
Note: Includes funds, investment corpus announcements between January 1st to June 27th, 2023 | The funds have been placed in alphabetical order
*Funds which have India as one of the focus markets | **Announced in multiple tranches
Capria Ventures* VC Fund $100 Mn Early & Growth Stage AI, Climatetech
CarTrade Ventures CVC $91.3 Mn NA Automotive
Chanakya Opportunities Fund I VC Fund $12.5 Mn Early Stage Sector Agnostic
Chiratae Ventures(Growth Fund I) VC Fund $122 Mn Growth Stage Sector Agnostic
Courtside Ventures (Fund III) VC Fund $100 Mn Early Stage Sports, Online Gaming & Lifestyle
Dallas Venture Capital VC Fund $42.6 Mn Stage-Agnostic Enterprisetech
Early Spring VC Fund $12.2 Mn Early Stage Home & Personal Care, Health & Wellness
Epiq Capital (Fund II) VC Fund $235 Mn Growth & Late Stage Tech, Tech Enabled
Grayscale Ventures VC Fund $20 Mn Early Stage AI, SaaS, Dev-Infra
Iron Pillar (Fund II) VC Fund $129 Mn Growth & Late Stage SaaS
Lighthouse Canton Debt Fund $67.3 Mn Growth Stage Sector Agnostic
Lumikai VC Fund $50 Mn Pre-Seed To Series A Gaming, Interactive Media
Multiples PE (Fund IV) PE Fund $640 Mn Growth & Late Stage Sector Agnostic
Nexus Ventures (Fund VII)* VC Fund $700 Mn Stage-Agnostic AI, SaaS, Fintech & Commerce
Omnivore (Fund III) VC Fund $150 Mn Seed To Series A Agritech, Climate Sustainability
PeerCapital VC Fund $37.5 Mn Early & Growth Stage Fintech, Healthtech, Enterprisetech, Climate Tech
Physis Capital VC Fund $50 Mn Early Stage Sector Agnostic
Pi Ventures** VC Fund $14.8 Mn Early Stage AI, Deeptech, Blockchain, Spacetech, Biotech
Piper Serica Angel Fund $9.1 Mn Early Stage Technology
Prath Ventures VC Fund $6.1 Mn Early stage, Growth stage Consumer Services
Rockstud Capital (Investment Fund II) Angel Fund $36.4 Mn Early & Growth Stage Digitalisation, ESG, Fintech, Consumer Services
Speciale Invest (Growth Fund I) VC Fund $24.4 Mn Early Stage Spacetech, Green Hydrogen, Robotics, AI
Stride Ventures (Fund III) Debt Fund $100 Mn Stage Agnostic Sector Agnostic
Unitus Ventures (Fund I and Fund II) VC Fund $40 Mn Early Stage AI, Climate Tech
V3 Ventures* VC Fund $109.5 Mn Early Stage Digital, Consumer Business
VQ Scale Fund PE Fund $121 Mn Late Stage Sector Agnostic
WinZO (Game Developer Fund) CVC $50 Mn Stage-Agnostic Online Gaming
Women Entrepreneurs Early Growth Fund I VC Fund $15 Mn Early & Growth Stage Climate tech,Agritech,Health tech,Edtech and Fintech
Z3Partners VC Fund $67.3 Mn Early & Growth Stage Digital & Technology
Zero To One VC Fund $36.5 Mn Early Stage Edtech, Healthtech, Agritech, Medtech, Cleantech
Indian Startup
Investor Sentiment
Survey H1 2023
Investors Remain Confident In Indian Startups Amid Economic Uncertainty

52% of the participants voted that they have participated in more startup funding deals in H1 2023 as compared to the previous year
More 52%
Less 48%
0% 20% 40% 60%
Deal Participation (H1 2023 vs H1 2022)
Source: Inc42
Note: This analysis is based on a survey of 45+ partners/principals and other senior executives at investment firms active in the Indian startup ecosystem.
Question asked: Compared to H1 2022, did you participate in more or fewer deals in H1 2023?.
Fintech Voted As The Most Preferred Sector In H1 2023

Fintech startups received the highest amount of funding in growth ($282 Mn) and late stage ($1.7 Bn)
Deal Count
Most Preferred Sector H1 2023 Funding Notable Participating Investors
(H1 2023 )
1 Fintech $2.1 Bn 137
2 Enterprisetech $684 Mn 113
3 Cleantech $271 Mn 79
4 Deeptech $150 Mn 17
5 Ecommerce $1 Bn 17
Source: Inc42
Question asked: Which among the following was your most preferred startup sector in H1 2023 (January to June)?
Two-Third Indian Startup Investors Optimistic About VC Funding in H2 2023

However, based on the current rate of capital inflow, we do not anticipate a blockbuster recovery in Indian startup funding in the
second half of 2023.
No
36.0%
Indian
Startup
Investors
Yes
64.0%
Source: Inc42
Question asked: Do you believe that the overall venture capital inflow in Indian startups will improve in the second half (H2) of calendar year 2023?
Less Than 50% Startup Investors In India Believe That Early Stage Investments
Will Recover In H2 2023
Deal count in two most popular early stage funding type seed & Pre-Series A, dropped 44% and 32% respectively in H1 2023
compared to the previous year
Positive
Investor Sentiment
Negative
Neutral
0% 10% 20% 30% 40% 50%
% of total respondents
Source: Inc42
Question asked: In terms of the ease with which an early-stage startup can raise venture capital, how would you rate the overall investor sentiment in H2 2023?
Less Than One-Third Startup Investors In India Believe That Growth Stage
Investments Will Not Recover In H2 2023
Following recent corporate governance blunders in the ecosystem, investors are increasingly concerned about the efficacy of the
market expansion strategy of Indian startups
Negative
Positive
Neutral
0% 10% 20% 30% 40% 50%
% of total respondents
Source: Inc42
Question asked: In terms of the ease with which a growth-stage startup can raise venture capital, how would you rate the overall investor sentiment in H2 2023.
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Disclaimer
The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the information presented in this
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INDIAN TECH STARTUP

India’s Startup Economy . . . . . . . . . . . . .................................................................. 04 Deal Count Trends

Top 10 Funding Rounds

India’s Digital Economy In A Nutshell

1.3 Bn+ 61% 44%

$0.17 4.7 Hours 600 Mn+

Per GB Internet Average Hours Spent Number Of

$3.4 Tn 350 Mn+ 373 Mn+

Source: TRAI, NPCI, Bain & Company, Data.ai

Indian Startup Funding & Deals Landscape

$141 Bn+ 1.2K 108

5.3K+ 6 Bn+ 106

Indian Startup Funding & Deals Landscape

Total Funding $5.4 Bn $6 Bn $19 Bn

Total Deals 462 617 900

Average Ticket Size $3.5 Mn $3 Mn $4 Mn

Mega Deals ($100 Mn & Above) 14 9 49

No. Of M&As 67 75 164

$141 Bn+ Raised By Indian Startups Since 2014

FUNDING AMOUNT ($ BN) DEAL COUNT

Startup Funding Drops 72% YoY In H1 2023

Indian Startup Funding Fails To Pick Pace

Funding Amount ($ Bn) Deal Count

June Emerged To Be The Worst Month For Startup Funding In 2023

Indian Startup Funding In H1 2023: Deal Size Wise Classification

IN THE FIRST HALF OF

264 Under $10 Mn

Total funded startup 62 140 95

% total funded startup 13% 17% 16%

Total capital Inflow $289 Mn $2.4 Bn $1.4 Bn

% total capital inflow 5% 13% 14%

Top funded sector Ecommerce Ecommerce Ecommerce

Top startup hub Delhi NCR Bengaluru Delhi NCR

Mega Deal Count Takes A Massive Hit In H1 2023

Median Ticket Size Shows Signs Of Recovery

Top 10 Indian Startup Funding Rounds Of H1 2023

Sector Funding Stage Round Size ($ Mn)

Fintech Late Stage $850 Mn

Ecommerce Late Stage $600 Mn

Fintech Late Stage $400 Mn

Enterprisetech Late Stage $250 Mn

Fintech Growth Stage $187 Mn

Fintech Late Stage $110 Mn

Ecommerce Late Stage $104 Mn

Fintech Late Stage $100 Mn

Fintech Late Stage $100 Mn

Ecommerce Late Stage $86 Mn

Indian Startup Funding: Top 5 Sectors Witnessed Major Drop In Funding

Fintech $2.1 Bn -37% 65 -59%

Ecommerce $1.1 Bn -67% 87 -52%

Enterprisetech $684 Mn -75% 85 -52%

Cleantech $261 Mn -52% 31 -34%

Consumer Services $239 Mn -83% 19 -10%

Delhi NCR Delhi NCR

Top 5 Startup Hubs (H1 2023)

0.0 0.5 1.0 1.5 2.0 0 50 100 150

Funding Amount ($ Bn) Deal Count

Bengaluru $2 Bn -76% 137 -54%