It was a year in which the slowdown that started the previous year hit a new low, and making money became important again, versus burning it
India’s tech startup ecosystem continues to face the effects of the funding slowdown throughout 2023, with $7 billion in total funding, as of December 6.
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“While the funding slowdown in 2023 presents challenges for the Indian tech startup ecosystem, we remain optimistic about the future,†Neha Singh, co-founder of Tracxn, says in the private markets intelligence provider’s latest report on the funding scene in India’s startup ecosystem. In a year when large global names that drove the funding frenzy of previous years were absent, favourable government policies and a fast-growing local economy will help India’s startups succeed, Singh says.
Here are the top takeaways from Tracxn’s recent report on funding in India’s tech startup landscape in 2023:
The October-to-December three-month period has received a total funding of $957 million, making it the lowest funded quarter since September 2016. The decline is primarily due to the biggest drop in late-stage funding, by over 73 percent to $4.2 billion in 2023 from $15.6 billion in 2022. At 17, the number of $100 million-plus rounds this year, is 69 percent lower than in 2022.
India fell one position to end 2023 as the fifth-most funded geography globally, from rank four in 2022 and 2021.