Indian startup funding hits 5-year low in Q3 2023 at $1.5 bn: Tracxn

The quarter saw five funding rounds cross the $100 million mark, including the likes of Perfios, Zepto, Ola Electric, Ather Energy and Zyber 365

Investment in Indian startups dropped to a five-year low in the third quarter of calendar year 2023, with funding declining by 54 per cent year-on-year to $1.5 billion. The funding also fell 29 per cent quarter-on-quarter, according to a report by market intelligence platform Tracxn.

"Despite the challenging funding environment, India ranks fifth in terms of highest funded countries in Q3 2023 and maintains its fourth-place position for the year-to-date. This highlights the resilience of India's tech startups and their adaptability to market fluctuations," said Neha Singh, co-founder of Tracxn.

The quarter witnessed five funding rounds that exceeded $100 million, featuring companies such as Perfios, Zepto, Ola Electric, Ather Energy, and Zyber 365.

"Even with the decline in investment, India's tech ecosystem remains among the global leaders. The report reveals a notable uptick in month-on-month funding, which surged by 91 per cent from $376 million in August 2023 to $720 million in September 2023," said Abhishek Goyal, co-founder of Tracxn.