[ad_1]
Tracxn, a number one international market intelligence platform, at present launched its ‘Tracxn Geo Annual Report: India Tech 2023.’ The report is the corporate’s annual unique report, providing an in-depth overview of the Indian startup ecosystem, together with funding actions, investor exits via acquisitions and IPOs, and wider developments within the fundraising panorama.
The report states that the Indian tech startup ecosystem has witnessed a big funding decline of 72% in 2023, in comparison with $25 billion within the earlier 12 months, making it the lowest-funded 12 months within the final 5 years. With a complete funding of $7 billion acquired to this point this 12 months, India has dropped from 4th place in 2022 and 2021 to fifth place among the many highest-funded geographies globally in 2023. The final quarter (This autumn) recorded the bottom funding of $957 million to this point, marking it the lowest-funded quarter since Q3 2016.
The decline is primarily because of the largest drop in late-stage funding, by over 73% to $4.2 billion in 2023 from $15.6 billion in 2022. The variety of $100 million+ rounds recorded had been solely 17, dropping by 69% in comparison with final 12 months. FinTech, pushed by rising smartphone penetration and authorities initiatives in the direction of a cashless economic system, has acquired $2.1 billion in funding to this point in 2023, a lower from $5.8 billion from the identical interval final 12 months. PhonePe, a number one funds firm, stands out because the top-funded firm within the sector, securing a complete of $750 million in 4 Sequence D rounds which makes up for 38% of the funding acquired by the sector. Perfios, Insurancedekho, and Kreditbee, are a number of the different top-funded corporations within the sector this 12 months.
The Retail sector has acquired $1.9 billion in funding, marking a 67% drop in comparison with 2022. Lenskart, with $600 million raised in two Sequence J rounds, emerges because the top-funded firm within the sector this 12 months.
Enterprise Purposes, the third-highest funded sector in 2023, has skilled a big lower of 78% in comparison with the earlier 12 months, securing $1.56 billion in funding.
Regardless of the general funding slowdown, sectors resembling Surroundings Tech and SpaceTech have garnered investor consideration. Surroundings Tech acquired $1.2 billion in funding, whereas SpaceTech noticed a 6% improve with $122 million raised to this point in 2023 led to its privatization by the federal government.
Different points highlighted within the report embrace solely two new unicorns created; Incred and Zepto as in opposition to 23 within the earlier 12 months and 119 acquisitions as in comparison with 187 acquisitions in 2022, a 36% drop. Route Cell, Arcion and Gram Energy had been a number of the main acquisitions in 2023. Nevertheless, IPO numbers didn’t see a serious drop this 12 months with 18 tech corporations going public in 2023 until date as in comparison with 19 in 2022. Ideaforge, Yatra and IKIO Lighting are a number of the notable tech IPOs of 2023.
Bengaluru, Mumbai, and Delhi-NCR proceed to draw vital funding in India’s tech startup ecosystem with LetsVenture, Accel, and Blume Ventures, being the highest traders supporting the expansion of the India Tech house.
Commenting on the report insights, Neha Singh, Co-Founder, Tracxn stated, “Whereas the funding slowdown in 2023 presents challenges for the Indian tech startup ecosystem, we stay optimistic concerning the future. With beneficial authorities insurance policies and a fast-growing economic system, we imagine India is well-positioned for achievement within the years to come back. Our focus stays on innovation and creating worth, and we’re assured that the trade will rebound and flourish.”
This decline in funding comes at a time when India’s economic system is predicted to develop at a 6.3% annual price in 2023–24, with additional progress anticipated within the upcoming fiscal 12 months. Regardless of the funding slowdown, the federal government stays dedicated to selling the tech ecosystem within the nation. A number of schemes and initiatives have been launched, together with tax concessions for startups, customized responsibility exemptions for EV-related capital items and equipment, and the Drone Shakti Program, amongst others. These initiatives goal to help the expansion of India’s startup ecosystem, fueled by its standing as one of many fastest-growing main economies on the earth.
[ad_2]
Source link