Indian Tech Startup Funding Report H1 2023 by Inc42 Media

INDIAN TECH STARTUP

FUNDING REPORT H1 - 2023

Table Of Contents India’s Digital Economy . . . . . . . . . . . . . . .................................................................. 03

Mergers & Acquisitions ................................................. 27

India’s Startup Economy . . . . . . . . . . . . .................................................................. 04

Deal Count Trends

YoY Funding Amount & Deal Count: 2014 To H1 2023 ....................................... 05

H1 2023 Sectorwise Split

Half Yearly Funding Amount & Deal Count Trends [H1 2014 To H1 2023} ............... 06

Funding Amount & Deal Count Mega Deal Count Average Ticket Size H1 2023: Startup Investments & Investors ....................................................... 14

Top 10 Funding Rounds Sectorwise Analysis Funding Stagewise Analysis Startup Hubwise Analysis

H1 2023 Hubwise Split Investor Ecosystem ..................................................... 30

Half Yearly Investor Participation Trends Most Active Investors H1 2023 Indian Startup Investor Sentiment Survey H1 2023 ............. 40

India’s Digital Economy In A Nutshell

1,343

1,310

1,273

1,132

1,186

1,134

1,075

1,008

932

846

1,000

749

Internet Users (Mn)

1,500

1.3 Bn+

61%

44%

Internet Users By 2030

Internet Penetration In India

Increase In Internet Users From 2022 To 2030

$0.17

4.7 Hours

600 Mn+

Per GB Internet Cost

Average Hours Spent On Mobile Per Day Per User

Number Of Smartphone Users

$3.4 Tn

350 Mn+

373 Mn+

Total Value Of UPI Transactions Up to May 2023

Number Of Users Transacting Online

Estimated Rural Internet Users In 2022

500

2020

2021 2022F 2023F 2024F 2025F 2026F 2027F 2028F 2029F 2030F

Source: TRAI, NPCI, Bain & Company, Data.ai

Indian Startup Funding & Deals Landscape STARTUP FUNDING

M&AS & EXITS

UNICORNS & SOONICORNS

$141 Bn+

1.2K

108

Total Funding

Total Deal Count

Indian Unicorns

5.3K+

6 Bn+

106

Unique Funded Startups

Spent On M&As

Indian Soonicorns

$5.9 Bn

$345 Bn

Total Seed Stage Funding

Total Startup IPOs

Combined Valuation Of Indian Unicorns

$34 Bn

Total Growth Stage Funding

Upcoming Startup IPOs

Combined Valuation Of Indian Soonicorns

Source: Inc42 Note: Based on Indian startup funding recorded between 2014 and H1 2023

Indian Startup Funding & Deals Landscape

H1 2023

H2 2022

H1 2022

$5.4 Bn

$6 Bn

$19 Bn

462

617

900

$3.5 Mn

$3 Mn

$4 Mn

Mega Deals ($100 Mn & Above)

No. Of M&As

164

Total Funding Total Deals Average Ticket Size

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

$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 50

2,000

1,584 1,517

1,500

42 30

983

1,045

996 832

376

13 9

2014

1,000

812

25 462

5 0

953

2015

2016

5.4 2017

2018

FUNDING AMOUNT ($ BN) Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

2019

2020 DEAL COUNT

2021

2022

H1 2023

500

DEAL COUNT

Funding Amount ($ Bn)

Startup Funding Drops 72% YoY In H1 2023

20.0

1000

15.0

750

10.0

500

5.0

250

0.0

H1- 2014

H1- 2015

H1- 2016

H1- 2017

H1- 2018

H1- 2019

Funding Amount ($ Bn) Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1- 2020 Deal Count

H1- 2021

H1- 2022

H1- 2023

Deal Count

Funding Amount ($ Bn)

The global recession and concerns surrounding startup business models have had a significant impact on startup funding in the first half of 2023

Indian Startup Funding Fails To Pick Pace

1,000

750

500

250

H1-2020

H2-2020

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1-2021

H2-2021

H1-2022

Funding Amount ($ Bn)

Deal Count

H2-2022

H1-2023

Deal Count

Funding Amount ($ Bn)

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 100

1.5

1.0 50 0.5 25

0.0

Jan 2023

Feb 2023

Mar 2023 Funding Amount ($ Bn)

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

Apr 2023 Deal Count

May 2023

June 2023

Deal Count

Funding Amount ($ Bn)

Indian Startup Funding In H1 2023: Deal Size Wise Classification 0

$1 Bn and above

$500 Mn to <$999 Mn

$250 Mn to $499 Mn

$100 Mn $249 Mn

$50 Mn to $99 Mn

$25 Mn to $49 Mn

$10 Mn to $24 Mn

264

Under $10 Mn

Source: Inc42 Note: Only deals with disclosed funding amount are included in the analysis | Note: H1 2023 data is for the period between 1st January and 27th June 2023

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

H1 2023

H1 2022

H1 2021

Total funded startup

140

% total funded startup

13%

17%

16%

Total capital Inflow

$289 Mn

$2.4 Bn

$1.4 Bn

% total capital inflow

13%

14%

Top funded sector

Ecommerce

Top startup hub

Delhi NCR

Bengaluru

Delhi NCR

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% 80

Mega Deal Count

H1-2020

H2-2020

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1-2021

H2-2021

H1-2022

H2-2022

H1-2023

Median Ticket Size Shows Signs Of Recovery On a YoY basis, median ticket size of investment dropped by 13% in H1 2023

Median Ticket Size Of Funding Amount ($ Mn)

H1-2020

H2-2020

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1-2021

H2-2021

H1-2022

H2-2022

H1-2023

Top 10 Indian Startup Funding Rounds Of H1 2023 Sector

Funding Stage

Round Size ($ Mn)

Fintech

Late Stage

$850 Mn

Ecommerce

Late Stage

$600 Mn

Fintech

Late Stage

$400 Mn

Enterprisetech

Late Stage

$250 Mn

Fintech

Growth Stage

$150 Mn

Fintech

Late Stage

$110 Mn

Ecommerce

Late Stage

$104 Mn

Fintech

Late Stage

$100 Mn

Fintech

Late Stage

$100 Mn

Ecommerce

Late Stage

$86 Mn

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

Indian Startup Funding: Ecommerce & Fintech Remained Top Funded Sectors In H1 2023 Others 11.1%

0.6

Media & Entertainment 3.1% 4.1% 4.4%

Cleantech 4.8%

Enterprisetech

39.6%

0.2 0.2

Edtech Consumer Services

Fintech

0.2 0.3

Ecommerce

Others 21.7%

18.9%

100

2.1

$5.4 Bn Funding Amount ($ Bn)

Edtech 6.5%

Cleantech

0.7

462 Deal Count

6.7%

12.7%

Media & Entertainment

1.1

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

Ecommerce 20.2%

6.7%

Deeptech 6.9%

Enterprisetech

18.4%

Fintech 14.1%

Indian Startup Funding: Top 5 Sectors Witnessed Major Drop In Funding Compared To H1 2022 Funding Amount (H1 2023)

YoY Change

Deal Count (H1 2023 )

YoY Change

Fintech

$2.1 Bn

-37%

-59%

Ecommerce

$1.1 Bn

-67%

-52%

Enterprisetech

$684 Mn

-75%

-52%

Cleantech

$261 Mn

-52%

-34%

Consumer Services

$239 Mn

-83%

-10%

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

Bengaluru

Delhi NCR

Top 5 Startup Hubs (H1 2023)

Indian Startup Funding: Bengaluru Remains The Top Funding Hub In H1 2023

Mumbai

Chennai

Hyderabad

Chennai

Hyderabad

0.0

Mumbai

0.5

1.0 Funding Amount ($ Bn)

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

1.5

2.0

100 Deal Count

150

Top Five Hubs In H1 2023 vs H1 2022: Funding Drops Across Major Indian Startup Hubs Funding Amount (H1 2023)

YoY Change

Deal Count (H1 2023 )

YoY Change

Bengaluru

$2 Bn

-76%

137

-54%

Delhi NCR

$1.8 Bn

-54%

113

-52%

Mumbai

$714 Mn

-76%

-42%

Chennai

$110 Mn

-92%

-60%

Hyderabad

$76 Mn

-83%

-54%

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

Indian Startup Funding: Stagewise Outlook [H1 2023] Total Funding Amount

Deal Count

Median Ticket Size

Top Sector (Deal Count)

Late Stage

$3.3 Bn

$30 Mn

Fintech

Growth Stage

$1.4 Bn

$10 Mn

Ecommerce

Bridge Funding

$285 Mn

$3 Mn

Ecommerce

Seed Stage

$479 Mn

233

$1.2 Mn

Enterprisetech

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

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% 12.0

125

10.0

100

75 6.0 50 4.0 25

2.0

0.0

H1- 2014

H1- 2015

H1- 2016

H1- 2017

H1- 2018

Funding Amount ($ Bn) Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1- 2019

H1- 2020 Deal Count

H1- 2021

H1- 2022

H1- 2023

Deal Count

Funding Amount ($ Bn)

8.0

Debt Funding To The Rescue For Late Stage Startups Debt funding deals report uptick while other late stage rounds report a decline SERIES C

SERIES D

SERIES E

DEBT FINANCING

DEAL COUNT

25 23 18

9 5

H1-2020 H1-2021 H1-2022 H1-2023

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

7 2

H1-2020 H1-2021 H1-2022 H1-2023

14 9 5

H1-2020 H1-2021 H1-2022 H1-2023

Indian Startup Funding: Growth Stage Funding Witnessed 73% Drop In H1 2023 On an YoY basis, the Growth stage is the worst hit among all funding stages 250

6.0

200

150

100 2.0 50

0.0

H1- 2014

H1- 2015

H1- 2016

H1- 2017

H1- 2018

Funding Amount ($ Bn) Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1- 2019

H1- 2020

Deal Count

H1- 2021

H1- 2022

H1- 2023

Deal Count

Funding Amount ($ Bn)

4.0

Series B Funding Deals Plunged 72% In H1 2023 Compared to H1 2022, both Series A & B deal count plunged 57% and 72% respectively SERIES A

150

SERIES B

DEBT FINANCING

135 100 DEAL COUNT

98 76 50

58 45 36

H1-2020

H1-2021

H1-2022

H1-2023

H1-2020

21 H1-2021

H1-2022

H1-2023

Source: Inc42 Note: Only deals with disclosed funding stage are included in this analysis | H1 2023 data is for the period between 1st January and 27th June 2023

11 H1-2020

H1-2021

H1-2022

H1-2023

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 400

150

300

Deal Count

Funding Amount ($ Mn)

100

200

50 100

H1- 2014

H1- 2015

H1- 2016

H1- 2017

H1- 2018

H1- 2019

Funding Amount ($ Mn) Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1- 2020

Deal Count

H1- 2021

H1- 2022

H1- 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. 500

1,500

400

300

200 500 100

H1- 2014

H1- 2015

H1- 2016

H1- 2017

H1- 2018

H1- 2019

Funding Amount ($ Mn) Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1- 2020

Deal Count

H1- 2021

H1- 2022

H1- 2023

Deal Count

Funding Amount ($ Mn)

1,000

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 PRE SERIES A

SEED FUNDING

400

419

DEAL COUNT

300

273 200

233 166

100

109 83

36 H1-2020

H1-2021

H1-2022

Source: Inc42 Note: Only deals with disclosed funding stage are included in this analysis

H1-2023

H1-2020

H1-2021

H1-2022

H1-2023

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 200

M&A Count

150

100

H1-2020

H2-2020

Source: Inc42 Note: BH1 2023 data is for the period between 1st January and 27th June 2023

H1-2021

H2-2021

H1-2022

H2-2022

H1-2023

1 In Every 3 Startup Acquisitions In H1 2023 Was From The Enterprisetech Sector However, compared to H1 2022, the number of M&As in enterprisetech sector was 43% lower in H1 2023 Others

13.4%

9 Enterprisetech

Media & Entertainment 6.0%

Healthtech

9.0%

Ecommerce

31.3%

M&A Deal Count (H1 2023)

10.4%

Edtech

10.4% Source: Inc42 Note: Based on M&A deals recorded between 1 January and 27June 2023 | Acquiree organisation with international HQ are excluded from this analysis

Fintech

19.4%

Bengaluru, Delhi NCR & Mumbai Combined Made More Than 80% Of M&As In H1 2023 With investor becoming more conservative toward investment this year, many VC-backed startups are looking for exits via mergers or acquisitions

Others

18.0%

TOP 3 STARTUP M&A COUNT HUBS

M&A Deal Count (H1 2023)

Top Three Startup

82.0%

Source: Inc42 Note: Based on M&A deals recorded between 1 January and 27June 2023 | Acquiree organisation with international HQ are excluded from this analysis Acquiree organisation with international HQ are excluded from this analysis

BENGALURU

DELHI NCR

MUMBAI

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. 2,500

Unique Investor Count

2,000

1,500

1,000

500

H1-2020

H2-2020

Source: Inc42 Note: H1 2023 data is for the period between 1st January and 27th June 2023

H1-2021

H2-2021

H1-2022

H2-2022

H1-2023

Top Investor Ranking: H1 2023 Type

Total Deal Count

Notable Funded Startups

Angel Network/ Platform

100

Samosa Party, BatX, Power Gummies

Angel Network/ Platform

Blu Smart, Garuda Aerospace, Rooter

VC Firm

abCoffee, BreatheESG, ColabTools

Venture Debt Firm

OneCard,Country Delight, BluSmart Mobility

Venture Debt Firm

Lead School, Rebel Foods, Battery Smart

Angel Network/ Platform

Sugar Watchers, Sapio Analytics, Kyte Energy

Accelerator/Incubator

Zypp Electric, STAGE, TagZ Foods

Venture Capital Firm

Virohan, Freakins, Healthifyme

Venture Debt Firm

Rebel Foods, Stashfin, Rooter

Angel Network

STAGE, BankSathi, Raaho

Note: This ranking is based on data consolidated from Inc42’s Top Indian Startup Investor Ranking Survey, H1 2023 and deals recorded in the Inc42 database Note: This is the updated version of the investor ranking. On July 10, 2023, We Founder Circle, Blume Ventures, Faad Network, and India Quotient were added to the table.

Type

Total Deal Count

Notable Funded Startups

Venture Capital Firm

The Ayurveda Experience, Navadhan, Attron

Venture Debt Firm

Niro, Jumbotail, Stashfin

Angel Network/ Platform

BluSmart, Castler, Qlan, Crib, Crest

Venture Capital Firm

Mad Street Den, Bounce Infinity, Park+

Venture Capital Firm

Efeed, MyKare, RACEnergy

Venture Capital Firm

Anantadi, 6Degree, OckyPocky

Venture Capital Firm

Ripplr, Growfin, HighXP

VC Firm

Solar Ladder, Venwiz, Zoplar

Venture Capital Firm

Diagna, Adkrity, Ambitio

Venture Capital Firm

XYXX, The Whole Truth, Kreo

Type

Total Deal Count

Notable Funded Startups

Venture Capital Firm

StepChange, Ohm, Covrzy

VC Firm

SigTuple, Fundly.ai, FreeUp

Corporate Venture Capital (CVC)

Bonatra, MedySeva, Glamplus, Cureskin, Fasal

Angel Network/ Platform

Celcius, Oben Electric, STAGE

Corporate Venture Capital (CVC)

MProfit, NOTO, Spectacom Global

Venture Capital Firm

Toddle, STAGE, HYPD Store

Venture Capital Firm

StepChang, SuperHire, Mindgrove

Venture Capital Firm

Reo.Dev, DPD Zero, Kim.cc

Venture Capital Firm

GoZero, GoDesi, Ugaoo

Angel Network/ Platform

Qube Health, Aegeus Technologies, FDM Digital Solutions (Fairdeal)

Valuation Adjustments: Indian Unicorns Face Valuation Markdown Headwinds Current Valuation

Source: Reports, Investor Filings

Investor Who Slashed The Valuation

Markdown Percentage

Valuation Post Markdown

$22 Bn

50%

$11 Bn

$22 Bn

62.00%

$8.3 Bn

$22 Bn

72.80%

$5.98 Bn

$22 Bn

76.80%

$5.1 Bn

$10.7 Bn

25%

$8 Bn

$10.7 Bn

48.50%

$5.5 Bn

$10.7 Bn

32%

$7.3 Bn

$10.7 Bn

39.25%

$6.5 Bn

$5.6 Bn

21.40%

$4.4 Bn

$5.6 Bn

50%

$2.8 Bn

$5.6 Bn

52%

$2.7 Bn

Current Valuation

Source: Reports, Investor Filings

Investor Who Slashed The Valuation

Markdown Percentage

Valuation Post Markdown

$5 Bn

38%

$3.1 Bn

$7.4 Bn

35%

$4.8 Bn

$3.2 Bn

8.56%

$2.9 Bn

$4.9 Bn

9.70%

$4.4 Bn

$9.6 Bn

71.8%

$2.7 Bn

$1.4 Bn

31.60%

$957.6 Mn

Funds Worth $3.6 Bn+ Announced For Indian Startups In 2023 Fund Type

Fund Type

Fund Size

Stage Focus

Sector Focus

3one4 Capital (Fund IV)

VC Fund

$200 Mn

Early Stage

Consumer Internet, SaaS, Fintech

AdvantEdge (Fund III)

VC Fund

$100 Mn

Early Stage

Aeravti Ventures

VC Fund

$12.1 Mn

Early & Growth Stage

Deeptech, Biosciences, Agritech, Climate

Agri-Focused Accelerator Fund

Govt Fund

Undisclosed

Stage-Agnostic

Agritech

Airavat Global Technology Fund R

VC Fund

$40 Mn

Listed Tech Businesses

Consumer, Financial Services, Technology & Pharma

Avaana Capital

VC Fund

$70 Mn

Seed To Series

Energy Transition & Resource Management

B Capital (Growth Fund III)*

VC Fund

$2.1 Bn

Early Stage

Enterprisetech, Fintech, Healthtech, SaaS

B Capital (Healthcare Fund I)*

VC Fund

$500 Mn

Early & Late Stage

Digital Health, Biotech

Blume Continuity Fund

VC Fund

$24.4 Mn

Follow On Rounds

Consumer Internet, SMB Marketplaces, SaaS

BoldCap

VC Fund

$25 Mn

Early Stage

SaaS

Note: Includes funds, investment corpus announcements between January 1st to June 27th, 2023 | The funds have been placed in alphabetical order *Funds which have India as one of the focus markets | **Announced in multiple tranches

Fund Type

Fund Size

Stage Focus

Sector Focus

Capria Ventures*

VC Fund

$100 Mn

Early & Growth Stage

AI, Climatetech

CarTrade Ventures

CVC

$91.3 Mn

Automotive

Chanakya Opportunities Fund I

VC Fund

$12.5 Mn

Early Stage

Sector Agnostic

Chiratae Ventures(Growth Fund I)

VC Fund

$122 Mn

Growth Stage

Sector Agnostic

Courtside Ventures (Fund III)

VC Fund

$100 Mn

Early Stage

Sports, Online Gaming & Lifestyle

Dallas Venture Capital

VC Fund

$42.6 Mn

Stage-Agnostic

Enterprisetech

Early Spring

VC Fund

$12.2 Mn

Early Stage

Home & Personal Care, Health & Wellness

Epiq Capital (Fund II)

VC Fund

$235 Mn

Growth & Late Stage

Tech, Tech Enabled

Grayscale Ventures

VC Fund

$20 Mn

Early Stage

AI, SaaS, Dev-Infra

Iron Pillar (Fund II)

VC Fund

$129 Mn

Growth & Late Stage

SaaS

Fund Type

Fund Size

Stage Focus

Sector Focus

Lighthouse Canton

Debt Fund

$67.3 Mn

Growth Stage

Sector Agnostic

Lumikai

VC Fund

$50 Mn

Pre-Seed To Series A

Gaming, Interactive Media

Multiples PE (Fund IV)

PE Fund

$640 Mn

Growth & Late Stage

Sector Agnostic

Nexus Ventures (Fund VII)*

VC Fund

$700 Mn

Stage-Agnostic

AI, SaaS, Fintech & Commerce

Omnivore (Fund III)

VC Fund

$150 Mn

Seed To Series A

Agritech, Climate Sustainability

PeerCapital

VC Fund

$37.5 Mn

Early & Growth Stage

Fintech, Healthtech, Enterprisetech, Climate Tech

Physis Capital

VC Fund

$50 Mn

Early Stage

Sector Agnostic

Pi Ventures**

VC Fund

$14.8 Mn

Early Stage

AI, Deeptech, Blockchain, Spacetech, Biotech

Piper Serica

Angel Fund

$9.1 Mn

Early Stage

Technology

Prath Ventures

VC Fund

$6.1 Mn

Early stage, Growth stage

Consumer Services

Fund Type

Fund Size

Stage Focus

Sector Focus

Rockstud Capital (Investment Fund II)

Angel Fund

$36.4 Mn

Early & Growth Stage

Digitalisation, ESG, Fintech, Consumer Services

Speciale Invest (Growth Fund I)

VC Fund

$24.4 Mn

Early Stage

Spacetech, Green Hydrogen, Robotics, AI

Stride Ventures (Fund III)

Debt Fund

$100 Mn

Stage Agnostic

Sector Agnostic

Unitus Ventures (Fund I and Fund II)

VC Fund

$40 Mn

Early Stage

AI, Climate Tech

V3 Ventures*

VC Fund

$109.5 Mn

Early Stage

Digital, Consumer Business

VQ Scale Fund

PE Fund

$121 Mn

Late Stage

Sector Agnostic

WinZO (Game Developer Fund)

CVC

$50 Mn

Stage-Agnostic

Online Gaming

Women Entrepreneurs Early Growth Fund I

VC Fund

$15 Mn

Early & Growth Stage

Climate tech,Agritech,Health tech,Edtech and Fintech

Z3Partners

VC Fund

$67.3 Mn

Early & Growth Stage

Digital & Technology

Zero To One

VC Fund

$36.5 Mn

Early Stage

Edtech, Healthtech, Agritech, Medtech, Cleantech

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

52%

48%

Less

20%

40% Deal 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?.

60%

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) Most Preferred Sector

H1 2023 Funding

Deal Count (H1 2023 )

Fintech

$2.1 Bn

137

Enterprisetech

$684 Mn

113

Cleantech

$271 Mn

Deeptech

$150 Mn

Ecommerce

$1 Bn

Notable Participating Investors

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: Which among the following was your most preferred startup sector in H1 2023 (January to June)?

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.

36.0%

Indian Startup Investors Yes

64.0%

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: Do you believe that the overall venture capital inflow in Indian startups will improve in the second half (H2) of calendar year 2023?

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

Investor Sentiment

Positive

Negative

Neutral

10%

20%

30% % of total respondents

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?

40%

50%

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

Negative

Positive

Neutral

10%

20%

30% % of total respondents

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.

40%

50%

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