Indian startup ecosystem funding plummeted by a staggering 33% to $ 6.9 billion in the April-June (Q2) quarter from $ 10.3 billion in the first quarter (Q1) of this calendar year, according to report from Tracxn Technologies.
As per the data intelligence platform report, 121 new firms completed their first rounds of funding in Q2, four startups became unicorns, 62 were acquired, and five startups filed for (IPOs).
Dailyhunt, Delhivery, Udaan, ShareChat, and upGrad were the top five players in Q2 in terms of revenue collection as startups raised a total of $ 6.9 billion across 409 funding rounds. Bengaluru, Delhi and Mumbai were the highest-paid cities, as per the reports.
Delhivery raised new capital with its public issue in May and the Udaan fundraiser was made through convertible notes.
The total number of unicorns increased to $ 31.8 billion in Q2 due to the emergence of new unicorns such as Leadsquared, Purplle, Physics Wallah, and Open. Among the outputs, the top three acquisitions in Q2 were Blinkit (by Zomato), Whiteteak (by Asian Paints), and MyHQ (by Anarock). The five starters who applied for the IPOs were eMudhra, Delhivery, Handicrafts village, Eighty Jewelers, and Veranda Learning Solutions.
The Flood of venture capital directed at Indian startups in recent years is drying up even as a stream of global investors, including Sequoia Capital, they warned. entrepreneurs in volatile financial markets. Big-ticket funding rounds have had a major impact over the past two months which shows investors’ reluctance to write big checks.
Rahul Taneja, partner at Lightspeed Venture Partners, Said, “Late-stage financing is where we have seen a bit of pause, and most of the aggregate dollar value for the ecosystem comes from late-stage deals. And if the late-stage funds slow down, it looks like the ecosystem is slowing down.”
Sanjay Swami, Chief Executive of Prime Venture Partners, said, “In addition, for the first half of the year, total investment stood at $ 17.9 billion, a 36% increase from the same period last year.”
Fears of inflation, as well as rising interest rates by major banks, particularly the US Federal Reserve, were exacerbated by ongoing Russia. – The Ukrainian war. This has affected markets around the world as the stock market technology continues to evolve, thus reducing investor sentiment. Data from other research companies too, confirms falling numbers.
Data from Venture Intelligence shows that venture capital (VC) funding for Indian startups has dropped by 37% in Q2 this year’s calendar to $ 6.9 billion compared to $ 11 billion in Q1.