BackQ3 startups funding least in last 5 years, only 2 unicorns added: Tracxn report
The third quarter of 2023 witnessed fund inflows of about $1.5 billion, 30% down from the previous quarter and a 54% fall from a year ago period
PremiumThe funding for Indian startups was the least in the third quarter of calendar year 2023 in last five years, said a report by Tracxn.
The third quarter of 2023 witnessed fund inflows of about $1.5 billion, 30% down from the previous quarter and a 54% fall from a year ago period.
Only two unicorns -- Zepto and Zyber 365 -- were added in the third quarter, according to the Tracxn report.
The Tracxn report said that Perfios, Zepto, Ola Electric, Ather Energy, and Zyber 365 raised $100 million plus rounds in the July-September quarter of 2023. Perfios led the way with a series D round of $229 million.
“Fintech sector witnessed 68% growth from the previous quarter due to wider and rapid adoption of UPI in domestic and international markets," said the report.
Neha Singh, co-founder of Tracxn said: “Despite facing the challenges of a funding winter, India ranks as the fifth-highest funded country in Q3 2023 and maintains its fourth-place position in terms of total funding for the year to date. It underscores the resilience of India's tech startups and their ability to adapt to changing market conditions."
After a rise in startup funding in fourth quarter of 2022, the fall in July-September 2023 is the third consecutive drop in funding, added the report.
Of the total $1.5 billion raised in Q3 2023, late-stage rounds saw funding of about $1 billion, early-stage rounds saw $416 million, and seed stage saw $84.3 million, as per the report.
The maximum total funding raised was led by Bengaluru, followed by Mumbai and Noida, added the report.
“Despite the decline in funding, India remains among the top-performing tech ecosystems globally. A promising sign in the report is the month-on-month funding growth, with an impressive 91% increase from $376 million in August 2023 to $720 million in September 2023," said Abhishek Goyal, co-founder of Tracxn.
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