Yet another month has gone by and there are now even stronger signals of the upcoming downturn in the Indian ecosystem. We at Inc42 don’t believe in speculations but rather in data backed signals. So we went ahead and crunched some numbers for April’s funding scenario – Trends are changing, and so is the ecosystem.
Although, the number of deals for the month of April 2016 is still higher (by 31%) than April 2015, the total amount of funding (disclosed) has come down by 74% from $1 Bn to $0.3Bn (Ola and Quikr comprising $0.55 Bn of the total funding last year in the same month). Also, Bangalore no longer entertains the spot of startup utopia, neither in terms of deals or amount; it has come down to 23% (from 33%), and Delhi/NCR is found to emerged with 38% of the share (in terms of deals) as compared to 33% that was observed during the Q1 of 2016.
But first let’s get to the numbers and then we’ll get to some of the key takeaways from the report:
This report by Inc42 DataLabs, analyzes the current scenario and emerging trends across the various dimensions that define the Indian startup ecosystem for the month of April 2016. We tried to compile all the rising startups that acquired funding in the month of April 2016. The analysis includes 76 startups that have collectively raised $300 Mn (Disclosed).
The Rise of the Pre-Series A
Two years ago, the term Pre-Series A was almost non-existent. The term started around late 2014 and now has taken hold in the early stage market filling the gap between the early stage funded companies and the elusive Series A. This trend can also be answered by the increasing crunch in Series A.