Home/ News / India/  29.2% startups were profitable in Jan-June 2021, the number has fallen 25.7% this year

Only 3.5% of the startups that raised $100 million or more between January and June 2022 were profitable, down from 29.2% at the same time in 2021, according to Venture Intelligence.

Additionally, it stated that 48 companies had collected $100 million or more during the said period. Among them, statistics for 18 of the companies' Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) were unavailable while 14 of those companies with data readily available showed positive EBITDA.

The Venture Intelligence data only includes those businesses whose data is accessible because records for not all startups' EBITDA are available. Up until June 2022, 57 startups raised $100 million or more, according to Venture Intelligence. Only two of them reported positive earnings, and of those, 45 companies' EBITDA was unavailable.

In India, the major source of data and analysis on private company financials, transactions and their valuations is the Venture Intelligence service, which was established in 2002. Practitioners in the transaction industry, entrepreneurial businesses, educational institutions, and the media frequently use its research and analysis.

According to the data from Venture Intelligence, a total of 57 companies in India raised funding of $100 million or more between January and June 2022 as against 48 such firms during the corresponding period in 2021. Interestingly, it also showed that the overall funding for the Indian start-ups this year is almost the same as last year, showing shrinking deal size.

According to Venture Intelligence, India's early stage fundraising climate, particularly seed and Series A investments, is still thriving. In 2021, 250 businesses raised Series A funding, an increase of 75% from 142 businesses in 2020. In the January to March 2022 quarter, investments in seed and series A rose by 88 percent and 22 percent, respectively (over the same period in 2021).

Data from Venture Intelligence show, between 2017 and 2021, there was a rapid CAGR of 19 percent in the number of firms raising Series A rounds. For Series A investments between 2015 and 2021, e-commerce was the most popular industry, followed by SaaS, Fintech, Healthcare (including Healthtech), and Food & Beverages (including D2C brands).

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Updated: 03 Jul 2022, 01:00 PM IST
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