Today: Apr 23, 2024

2023’s Startup Funding: A Charted Journey

4 months ago

The funding environment for startups in India saw a significant decline in 2023, with funding dropping as much as 62% to about Rs 67,000 crore ($8 billion). This decline can be attributed to muted interest from investors and global macro headwinds. However, despite the challenging environment, some startups managed to raise large amounts of funding. Zepto, Lenskart, Builder.ai, and DMI Finance were among the top 10 largest fundraises of the year.

Looking ahead to 2024, investors have a more optimistic outlook. They expect increased deal activity and growth in the private equity landscape. Sectors like agritech, fintech, SaaS, consumer tech, and cleantech are expected to draw heightened attention from investors. Additionally, there is anticipation of a surge in funding for deep tech startups, indicating a shift from the dominance of software-as-a-service companies. Homegrown venture capital funds and family offices are also expected to play a key role as foreign investors start to exit the Indian market.

The general elections and the state of the overall economy will also have an impact on the funding environment. The performance of public tech stocks and a reversal in global macro headwinds, such as lower global inflation and lower interest rates, are also factors that will contribute to the funding environment in India.