Startup Funding Accounts 38% Dip To $598 Million In February: Report
The report added that the number of deals also declined to 67 funding rounds in February compared to 84 in the previous month
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Data shared by private investment tracker Tracxn has revealed that funding into Indian startups further slipped into a downward trajectory in February with only $598 million in total deal size recorded which is down 38% quarter-on-quarter compared to $962 million in January, as reported by FE.
The report further added that the number of deals also declined to 67 funding rounds in February compared to 84 in the previous month. According to a Tracxn's India Tech Monthly Funding report of January, the month-on-month Indian startup has seen a minor uptick of 3% from $935 million in December 2022 to $962 million in January 2023, while the number of funding rounds dropped by 22% in the same period.
It further stated that in Q4CY22, Indian startups raised $3.5 billion across 312 rounds, a 68% year-on-year decline compared to Q4CY21 when startups raised a whopping $11.25 billion across 726 rounds.
Despite the ongoing funding slowdown, February had at least three funding rounds above $100 million from InsuranceDekho, FreshToHome, and PhonePe, whereas January saw two $100 million rounds from the fintech apps PhonePe and KreditBee.
There were at least 125 active investors in the Indian startup ecosystem in February with early-stage investors Angelist and LetsVenture earning the top investor spot with 372 and 365 deals respectively. In addition, Delhi NCR startups saw the maximum funding raised, followed by Bengaluru, Gurgaon, and Mumbai in February 2023, while in January Bangalore saw the maximum funding raised, followed by Delhi NCR and Hyderabad, the report added.