India’s Start-up Funding in 2023: Insights from a 5-Year Dip

India’s tech startup ecosystem saw a significant funding slowdown in 2023, with total funding amounting to $7 billion, a 72% decline from the previous year. The decline in funding was primarily driven by a drop in late-stage funding, which fell by over 73% to $4.2 billion. The number of $100 million-plus rounds also decreased by 69% compared to the previous year. Fintech, retail, and enterprise applications were the top three sectors that received funding in 2023, but funding for these sectors also saw significant drops. Despite the funding slowdown, experts remain optimistic about the future of India’s startup ecosystem, citing favorable government policies and a fast-growing local economy as factors that will help startups succeed. Additionally, India is projected to become the third-largest economy in the world by 2027, with a GDP of over $5 trillion.