India Flash Bulletin

Venture capital financing for startups in India decreases by 71.5%

<p>According to a recent research, India’s startup-focused venture capital financing fell significantly, by 71.5% year over year, to $17.1 billion from January to August 2022.<img decoding=”async” class=”alignnone wp-image-218124″ src=”×500.jpg” alt=” venture capital financing for startups in india decreases by 71 5 istock venture c” width=”1394″ height=”929″ srcset=”×500.jpg 750w,×683.jpg 1024w,×512.jpg 768w,×100.jpg 150w, 1200w” sizes=”(max-width: 1394px) 100vw, 1394px” title=”Venture capital financing for startups in India decreases by 71.5% 15″></p>
<p>GlobalData, a data analytics and consulting firm, reports that throughout the course of 1,266 VC investment agreements reported between January and August 2022, the equivalent deal volume decreased by 42% YoY.</p>
<p>It was emphasized that the first eight months of 2023 saw a lot of change in the VC investment industry. 734 VC financing agreements totaling $4.9 billion were disclosed during this time.</p>
<p>In comparison to the same time in 2022, there was a YoY reduction in transaction volume and value, but the fundraising value decline was more pronounced, according to GlobalData.</p>
<p>From January through August 2023, 5.3% of all VC capital agreements disclosed worldwide included India. According to a GlobalData study, its percentage of the overall reported fundraising amount was 3.1%.</p>
<p>The Indian startup ecosystem is struggling with rising investor caution regarding startup valuations, according to Aurojyoti Bose, lead analyst at GlobalData. “Aside from several macroeconomic challenges and geopolitical conditions grappling the global VC funding landscape and making a dent in investor sentiments,” she added.</p>
<p>He said, “This is not only the issue with India; muted VC investment activity is now a worldwide phenomena with reduction in transactions volume and value occurring in most of the important economies.</p>
<p>Some of the significant VC investment transactions that took place between January and August 2023 were PhysicsWallah, which raised $250 million, Zepto, which raised $200 million, PhonePe, which raised $200 million, Veritas Finance, which raised $146 million, and KreditBee, which raised $120 million.</p>
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