Foreign VC funding in India declines 72% as unicorn machines stutter

As the so-called funding winter for India’s start-ups lingers on, the venture capital order in the country is getting upended. Foreign firms such as Tiger Global, Sequoia, SoftBank, Accel, and Y Combinator have nearly shut their taps.

Tiger and Accel have seen their investments fall by 97 per cent in 2023 so far, compared to the same period last year. Sequoia’s is down 95 per cent, Y Combinator’s 87 per cent, and SoftBank’s 80 per cent, according to data from Tracxn, the market intelligence platform.

Foreign money plays a crucial role in start-up funding in India. Of the $26.8 billion that Indian