Ending Soon! Save 33% on All Access

Startup Funding Declines 40 Per Cent In April-June, Says PwC Report As per report, the decline can be attributed to a global slowdown, decrease in tech stock valuations, inflation and geopolitical instability

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

As per PwC report, Geo-political instability appears to be taking a toll on the Indian startups with the total funding declining by 40 per cent to $6.8 billion in the April to June quarter. The early-stage deals comprised more than 60 per cent of the total with an average ticket size of $5 million, stated in the PwC India report titled, 'Startup Deals Tracker-Q2 CY22.'

"After three consecutive quarters of raising more than $10 billion, the total funding in the Indian startup ecosystem fell by 40 per cent during the second quarter of calendar year to reach $6.8 billion. The decline can be attributed to a global slowdown, decrease in tech stock valuations, inflation and geopolitical instability," said in the report.

Amit Nawka, partner, PwC India, in a news report quoted as saying, "We expect the overall funding landscape to take 1218 months to stabilize, during which it would be beneficial for startups to increase their funding runway. No matter which stages a startup is in, they would do well to keep a close tab on core business and ensure unit economics is strict as per plan. Valuations are likely to remain under pressure across all funding stages, primarily trickling down from the significant funding slowdown in late-stage or initial public offering."

The report also added that, "It further said that early-stage deals during Q2 CY22 continued to be stable at around $800 million and could remain stable or even grow in the next few quarters, given that entrepreneurial activity continues to flourish with increased digitization as well as the quantum of venture capital funds waiting to be deployed in Indian market."

According to the report, Bengaluru, National Capital Region (NCR) and Mumbai continue to be the key startup cities in India, together contributing around 95 per cent of the total funding activity in April to June quarter of 2022, followed by Chennai and Pune. In Bengaluru, more than $100 million was raised by seven companies each in the second quarter of 2022 which includes, Dailyhunt, Rapido, Leadsquared, Lenskart, CRED, Ather Energy and Observe.ai, majorly across the SaaS, logi and autotech space.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Thought Leaders

Need More Confidence? These 10 Bestselling Books Will Help Improve Your Self-Esteem

Self-esteem can be hard to come by and even harder to maintain. To give yourself a boost, try these authors' words of wisdom.

Leadership

How to Break Free From the Cycle of Overthinking and Master Your Mind

Discover the true cost of negative thought loops — and practical strategies for nipping rumination in the bud.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

Soleos Solar Energy Secures INR 48.5 Cr Funding

This funding infusion will help the company in generating its working capital, global renewable energy portfolio development and establishing manufacturing facilities across the globe.

Business News

Court Halts Graceland Foreclosure, Elvis' Granddaughter Calls Paperwork 'Forgeries'

The 13.8-acre estate was scheduled to be sold in a public foreclosure auction on Thursday. Presley's granddaughter and heir, Riley Keough, is fighting to save Graceland in court.

Business News

Target Is Lowering Prices on Thousands of Items — Here's Where You Can Expect to Save

The news was announced ahead of Target's Q1 2024 earnings call, expected to occur Wednesday at 10 a.m. EST.