Indian startups witness 38% decline in total funding in 2022: Reports

For Indian startups the year 2022 will be forever etched in memory for having made them re-evaluate their strategy and revisit the basics of business. Indian startups witnessed a decline of 38.4 per cent in total funding in 2022 (YTD) as compared to the previous year, 2021 (CY), while the number of investment rounds has shrunk by 32 per cent.

The main cause of this decline is a 50 per cent drop in late-stage funding. India added fewer unicorns this year, as the number of companies that gained billion-dollar valuations fell by half from a year earlier. According to reports, although the number of unicorns added in 2022 has declined by 50 per cent, from 46 in 2021 to 23, they still represent 10 per cent of all unicorns worldwide.

 

However, India’s startup journey is still on a strong footing, as investments in seed and series A continued to grow. The data alongside, sourced from Tracxn, points to what has happened in the Indian startup sector, especially in seed and series A. It identifies the top sectors that continued to attract investors, and top investors that continued to bet on the India story.