First, the crypto market, and now the Indian startup ecosystem.
Seems like the ongoing geopolitical tensions won’t spare anything that comes its way.
Not too long back, the Great Resignation was already bothering the Indian startups, and now PwC tells us that the startups’ total funding got slashed by a whopping 40% to $6.8 billion in the April-June quarter.
The early-stage deals made up more than 60% of the total, with an average ticket amount of USD 5 million. More than $3.1 billion in financing was given to fintech and software as a service (SaaS) firms in Q2.
The 40% decrease is shattering – considering that in the last 3 quarters, Indian startups managed to score more than $10 billion in funding.
Is all hope lost?
PwC predicts that the overall funding landscape could take 12-18 months to stabilize, during which it would be beneficial for startups to increase their ‘funding runway.’ Valuations are also likely to remain under pressure.
Metros In Focus
In Bengaluru, more than $100 million was raised by 7 companies each in Q2 of 2022 by Dailyhunt, Rapido, Leadsquared, Lenskart, CRED, Ather Energy, and Observe.ai, which majorly deal with the SaaS, logistics, and Autotech space.
$100 million each was raised by Delhi-borns like Delhivery, Stashfin, Rario, Grey Orange Robotics, Absolute Foods, Fashinza, and PhysicsWallah.
Trivia: Wait a minute, did you think that Bengaluru was still the startup capital of India?
Well, in a first, Delhi replaced Bengaluru as the startup capital of India this February.
However, Bengaluru did not waste any tears crying over spilt milk. Now that’s a different story. Let us know if you’d like us to spill it to you.
Mumbai-bred upGrad, Zepto, CoinDCX, and Turtlemint also raised over $100 million each.
Too long? Here’s a one-liner: Startup funding in India decreased by 40% to $6.8 billion between April and June; geopolitical tensions, inflation, and recession are to blame.