Startups wait for spring: Funding winter appears over but challenges ahead

After battling funding winter and scandals, the sector focuses on profitability

Inflated valuations, corporate misgovernance, cash burn, and the so-called funding winter were some of the defining trends in the Indian startup world in 2023. However, what could be perceived as a tumultuous year for the country’s startups was also a year of silver lining and sobriety for founders and investors alike.

The calendar year (CY) 2023 saw a series of valuation corrections, and several startups turned profitable after prolonged periods of losses.

Increased focus among startups and founders on governance and improving margins is again driving bullishness among investors as markets continue to recalibrate in CY 2024.

As such, funding