By 2025, 56% of all new internet users will be from rural areas, and 65% of new internet users will be female
users Internet Penetration (Active Users) 71% Urban Internet Penetration (Active Users) $0.16 Cost Of 1GB Internet
SOURCE: IAMAI, INC42 ANALYSIS
7K+ 5G Enabled Indian Cities/towns
395 Mn Number Of Male Internet Users
349 Mn Number Of Female Internet Users
Source: Inc42
Note:
Largest Startup Ecosystem In The World
Jobs Created In The Past Six Years
Indian Startups Launched To Date
Funding Raised By Indian Startups
Indian Startups In The Unicorn Club
Funded Startups In India
Investors Participated In Startup Funding
Combined Valuation Of Indian Startups
Listed Indian Internet Companies
3
4
Since 2021, Indian startups have witnessed a substantial influx of capital, with 52% of the total funding being raised during this period, primarily driven by the heightened adoption and usage of internet-based products in response to the pandemic
Source: Inc42
After experiencing a significant influx of funding in 2021 and 2022, the Indian startup ecosystem has entered a phase of correction. A decline in mega deals, a slowdown in the creation of new unicorns, governance issues plaguing startups, and global economic headwinds have emerged as the major factors behind this downturn
After witnessing a consecutive three-month decline in funding from June to August, the total funding in September ignites hope for a potential turnaround
Source:
Amid regulatory concerns in certain sectors, governance issues at growth and late-stage startups, and declining ticket sizes, startup funding has struggled to gain momentum, despite startup funds worth $5 Bn+ being announced
Source: Inc42
Sector
Fintech
Consumer Services
Cleantech
Enterprisetech
Fintech
Source: Inc42
Media & Entertainment
Agritech
Fintech
Edtech
Fintech
Note: Based on publicly recorded startup funding deals between 1st July and 27th September 2023
Round Size
Notable Investors
Kedaara Capital
Nexus Venture Partners, Glade Brook Capital Partners
Hero Motocorp, GIC
Grupo Carso, General Atlantic, Celesta Capita
Encina Lender Finance, Alpha Wave, Hummingbird, Peak XV
Nithin Kamath, Nikhil Kamath, SBI Mutual Fund
BL Agro
Westbridge Capital, Accel, Tanglin Ventures
Blume Ventures, DSG Consumer Partners, Kaizenvest PE
Dai-ichi Life Holdings
The median ticket size has experienced a 55% decrease compared to Q3 2022
Source: Inc42
Note: Q3 2023 data is for the period between 1st July and 27th September 2023
In Q3 2023, D2C (in ecommerce), and lendingtech (in fintech) emerged as the top funded sub-sectors
Source: Inc42
Note:
Capital inflow in growth and seed stage worst hit in Q3 2023 amid ongoing market correction in Indian startup ecosystem
Seed Stage
Bridge Funding
Growth Stage
Late Stage
Source: Inc42
Note: Based on publicly recorded startup funding deals between 1st July and 27th September 2023
Seed funding is the second most impacted stage, following growth, amid a venture capital slowdown
Growth stage funding deals suffered the most investor burnt amid the ongoing economic headwinds
The issues of corporate governance, losses, and economic headwinds makes it tougher for late stage startups to raise funding
Total Funding Amount YoY % Change
Funded Startups YoY % Change Top Funded Sector Top Startup Hub
After hitting the all-time high in Q1 2022, the Indian startup M&As have been on a continuous declining spree
Source: Inc42 Note:
Compared to Q3 2022, the number of investors who participated in Indian startup investments was 50% lower
Source: Inc42
Note:
Going by the deal count, cleantech was among the top five sectors with the most number of funding deals
Source: Inc42’s Most Active Investor Survey Q3 2023
Note: The information provided is based on the inputs from senior level executives (Partner, Principal, Senior Associates) of 45+ active venture capital/debt firms in India
Question asked: Which among the following was your most preferred startup sector in Q3 2023 (July to September)?
Chanakya Opportunities Fund I
Chiratae Ventures(Growth Fund I) Courtside Ventures (Fund III)
Creaegis (Fund I)
Fund Name Lighthouse Canton Lumikai
MIXI Global Investments
Multiples
(Fund IV)
Nexus Ventures (Fund VII)*
Omnivore (Fund III) PeerCapital Pentathlon Ventures (Fund II) Physis Capital
Ventures (Fund II)**
Source: Inc42
Rockstud Capital (Investment Fund II) RTP Global* Soonicorn Ventures
Speciale Invest (Growth Fund I)
Stride Ventures (Fund III)
Source: Inc42
Fund (II)
Note: Includes funds, investment corpus announcements between January 1st to Sept 27th, 2023 | The funds have been placed in alphabetical
*Funds which have India as one of the focus markets | **Announced in multiple tranches
Fund Name
Trifecta Capital (Fund III)
Unicorn India Ventures (Fund III)
Unitus Ventures (Fund I and Fund II)
V3 Ventures*
Varanium Capital
Veda VC
Vertex Master Fund III*
Vertex Ventures Southeast Asia & India (Fund IV)*
VQ Scale Fund WinZO (Game Developer Fund)
Source: Inc42
Note: Includes funds, investment corpus announcements between January 1st to Sept 27th, 2023 | The funds have been placed in alphabetical order *Funds which have India as one of the focus markets | **Announced in multiple tranches
Source: Inc42
Note: Includes funds, investment corpus announcements between January 1st to Sept 27th, 2023 | The funds have been placed in alphabetical order *Funds which have India as one of the focus markets | **Announced in multiple tranches
Indian startups raised $22 Bn in the first nine months of 2022 but only $7 Bn in 2023, a 68% drop
Source: Inc42’s Most Active Investor Survey Q3 2023
Note: The information provided is based on the inputs from senior level executives (Partner, Principal, Senior Associates) of 45+ active venture capital/debt firms in India
Question asked: Do you think that the funding for Indian startups in calendar year 2023 will exceed the total capital influx in 2022?
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.
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.
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