FUNDING REPORT
H1 - 2023
Indian Startup Funding & Deals Landscape
Source: Inc42
Note:
$141 Bn+ Raised By Indian Startups Since 2014
The deal count and unique startups funded during the period was 9.5K+ and 5.3K+ respectively
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Startup Funding Drops 72% YoY In H1 2023
The global recession and concerns surrounding startup business models have had a significant impact on startup funding in the first half of 2023
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Indian Startup Funding Fails To Pick Pace
Compared to H2 2022, startup funding amount and deal count plunged 10% & 25% respectively in H1 2023
June Emerged To Be The Worst Month For Startup Funding In 2023
The months of January and March stood out as the top performers, accounting for a combined 48% of the total funding received by Indian startups in the first half of 2023
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Indian
Startup Funding In H1 2023: Deal Size Wise Classification
IN THE FIRST HALF OF 2023, ONLY 4% OF THE DISCLOSED FUNDING DEALS REACHED THE MEGA DEAL THRESHOLD OF $100 MN OR ABOVE. THIS REPRESENTS A DECREASE FROM THE 6% SHARE OF MEGA DEALS OBSERVED IN H1 2022.
Women Led Startups: 88% Decrease In Capital Inflow In Women Led Startups In H1 2023
Total funded startup
% total funded startup
Total capital Inflow
total capital inflow
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Mega Deal Count Takes
A Massive Hit In H1 2023
Compared to H2 2022, the number of mega deals (valued at $100 Mn or above) increased by 55%. However, when looking at the YoY comparison, such deals witnessed a significant decline of 71%
Source: Inc42
Median Ticket Size Shows Signs Of Recovery
Source: Inc42 Note: H1
Top 10 Indian Startup Funding Rounds Of H1 2023
Indian Startup Funding: Ecommerce & Fintech Remained Top Funded Sectors
In H1 2023
Source: Inc42 Note:
Indian Startup Funding: Top 5 Sectors Witnessed
Major Drop In Funding
Compared To H1 2022
Indian Startup Funding: Bengaluru Remains The Top Funding Hub In H1 2023
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Top Five Hubs In H1 2023 vs
H1 2022: Funding Drops Across Major Indian
Hubs
Source: Inc42
Indian Startup Funding: Stagewise Outlook [H1 2023]
Source: Inc42
Note:
H1 2023
Witnessed Lowest Late Stage Startup Funding In Six Years
Compared to H1 2022, both funding amount & deal count decreased 72% & 61% respectively. Whereas compared to H2 2022 the funding amount picked 32% while deal count plunged by 30%
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Debt Funding To The Rescue For Late Stage Startups
Debt funding deals report uptick while other late stage rounds report a decline
Indian Startup Funding: Growth Stage Funding Witnessed
On an YoY basis, the Growth stage is the worst hit among all funding stages
73% Drop In H1 2023
Source: Inc42
Series B Funding Deals Plunged
72% In H1 2023
Compared to H1 2022, both Series A & B deal count plunged 57% and 72% respectively
Indian Startups Raised $285 Mn In Bridge Funding Deals In H1 2023
Compared to H1 2022, the funding amount and deal count plunged 22% & 35% respectively. Whereas compared to H2 2022, the funding amount showed minor uptick of 1% and deal count witnessed 16% rise
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Indian Startups Raised $479 Mn At Seed Stage
In H1 2023
Compared to both H1 2022 and H2 2022, the funding amount and deal count plunged massively in H1 2023. The deals dropped by 44% and 27% respectively. While amount wise it was a 66% and 53% decline respectively.
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Early Stage Funding Plunged On The Back Of Growing Market Uncertainty
Compared to H1 2022, Pre-Series A & seed funding deal count plunged 32% and 44% respectively
Source: Inc42
Startup M&As Fail To Pick Pace In H1 2023
Enterprisetech startups made one-third of the total 67 M&As recorded in H1 2023
Source: Inc42
Note: BH1 2023 data is for the period between 1st January and 27th June 2023
1 In Every 3 Startup Acquisitions In H1 2023 Was From The Enterprisetech
However, compared to H1 2022, the number of M&As in enterprisetech sector was 43% lower in H1 2023
With investor becoming more conservative toward investment this year, many VC-backed startups are looking for exits via mergers or acquisitions
Source: Inc42
Unique Investor Participation In Indian Startups Dips By
51%
The number of unique investors backing Indian startups fell by 54% in H2 2022, and remained on a similar trajectory in H1 2023.
Source: Inc42
Note: H1 2023 data is for the period between 1st January and 27th June 2023
Top Investor Ranking: Q1 2023
Samosa Party, BatX, Power Gummies
abCoffee, BreatheESG, ColabTools
OneCard,Country Delight, BluSmart Mobility
Lead School, Rebel Foods, Battery Smart
Sugar Watchers, Sapio Analytics, Kyte Energy
Zypp Electric, STAGE, TagZ Foods
Rebel Foods, Stashfin, Rooter
STAGE, BankSathi, Raaho
The Ayurveda Experience, Navadhan, Attron
Niro, Jumbotail, Stashfin
Notable Funded Startups
Mad Street Den, Bounce Infinity, Park+
Efeed, MyKare, RACEnergy
Anantadi, 6Degree, OckyPocky
Ripplr, Growfin, HighXP
Raaho, Ohm Mobility, STAGE
Solar Ladder, Venwiz, Zoplar
Diagna, Adkrity, Ambitio
XYXX, The Whole Truth, Kreo
StepChange, Ohm, Covrzy
SigTuple, Fundly.ai, FreeUp
Notable Funded Startups
(CVC)
Bonatra, MedySeva, Glamplus, Cureskin, Fasal
Celcius, Oben Electric, STAGE
(CVC)
MProfit, NOTO, Spectacom Global
Toddle, STAGE, HYPD Store
StepChang, SuperHire, Mindgrove
GoZero, GoDesi, Ugaoo
QB Health Technologies Pvt. Ltd. (Qube Health), Aegeus Technologies
Mivipro, Nativespecial , Esandhai
Pando, Kratos Studios, Venwiz
Battery pool, Apnamart, Bizztm
Source: Reports, Investor Filings
Funds Worth $3.6 Bn+
Indian Startup Investor Sentiment
Survey H1 2023
Investors Remain Confident In Indian Startups Amid Economic Uncertainty
52% of the participants voted that they have participated in more startup funding deals in H1 2023 as compared to the previous year
Participation (H1 2023 vs H1 2022)
Source: Inc42
Note: This analysis is based on a survey of 45+ partners/principals and other senior executives at investment firms active in the Indian startup ecosystem. Question asked: Compared to H1 2022, did you participate in more or fewer deals in H1 2023?.
Fintech Voted As The Most Preferred Sector In H1 2023
Fintech startups received the highest amount of funding in growth ($282 Mn) and late stage ($1.7 Bn)
Source: Inc42
Two-Third Indian Startup Investors Optimistic About VC Funding in H2 2023
However, based on the current rate of capital inflow, we do not anticipate a blockbuster recovery in Indian startup funding in the second half of 2023.
Source: Inc42
Note: This analysis is based on a survey of 45+ partners/principals and
Question asked: Do
Less Than 50% Startup Investors In India Believe That Early Stage Investments Will
Recover In H2 2023
Deal count in two most popular early stage funding type seed & Pre-Series A, dropped 44% and 32% respectively in H1 2023 compared to the previous year
Source: Inc42
Note: This analysis is based on a survey of 45+ partners/principals and other senior executives at investment firms active in the Indian startup ecosystem. Question asked: In terms of the ease with which an early-stage startup can raise venture capital, how would you rate the overall investor sentiment in H2 2023?
Less
Than One-Third Startup Investors In India Believe That Growth Stage Investments Will Not Recover In H2 2023
Following recent corporate governance blunders in the ecosystem, investors are increasingly concerned about the efficacy of the market expansion strategy of Indian startups
Source: Inc42
Note: This analysis is based on a survey of 45+ partners/principals and other senior executives at investment firms active in the Indian startup ecosystem. Question asked: In terms of the ease with which a growth-stage startup can raise venture capital, how would you rate the overall investor sentiment in H2 2023.
www.inc42.com
Inc42 is India’s largest tech media & information platform on a mission to build & serve India’s tech, startup & internet economy. From breaking the latest news to discovering the hottest startups, from spotting upcoming trends to simplifying complex concepts, we cover everything tech in India’s internet economy.
CREDITS
Born in January 2015, Inc42 has become the leading source for news & analysis on India’s rapidly growing tech, startup & internet economy. Inc42, with over 35,000+ published stories, 80+ research reports, 120+ conferences & events & having featured 1000s of entrepreneurs, now reaches over 25 Mn+ tech leaders & professionals every month.
SANDEEP SINGH ANALYST
COVER & REPORT DESIGN
SABITH
ADDRESS
Inc42 Media, 59/16, 4th Floor, Jujhar Tower, RD Marg, Kalkaji, New Delhi, Delhi 110019
Contact: editor@inc42.com
Disclaimer
The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the information presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media and Inc42 DataLabs, is not responsible for any inaccuracy in the information presented or for any damages caused by the use of information provided in this report. In case of any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to update the information in the digital version of the report. We are constantly updating our database of startups due to new person using or relying on any information in this publication.
This report has been prepared in good faith on the basis of information available at the date of publication without any independent verification. Ideope Media Pvt. Ltd. does not guarantee the accuracy, reliability or completeness of the information in this publication. Readers are responsible for assessing the relevance and accuracy of the content of this publication. While this report talks about various individuals and institutions, Ideope Media Pvt. Ltd. will not be liable for any loss, damage, cost or expense incurred or arising by reason of anyperson using or relying on any information in this publication.
This document makes descriptive reference to trademarks that may be owned by others. The use of such trademarks herein is not an assertion of ownership of such trademarks by Ideope Media Pvt Ltd and is not intended to represent or imply the existence of an association between Ideope Media Pvt Ltd and the lawful owners of such trademarks. Information regarding third-party products, services and organisations was obtained from publicly available sources, and Ideope Media Pvt. Ltd. cannot confirm the accuracy or reliability of such sources or information. Its inclusion does not imply an endorsement by or of any third party. The views and opinions in this report should not be viewed as professional advice with respect to your business.