According to Inc42's analysis, Indian startups raised a total of $3 Bn in Q1 2023, down 75% from $12 Bn raised in Q1 2022, indicating their cash-starved state
With maximum correction at Series C rounds, mega deals declined 77% YoY to seven in Q1 2023, owing to the declining revenues of Indian startups, their mounting losses, and founders groping in the dark to find strategies to scale
Wary of valuation corrections amid the funding winter, late-stage founders resorted to debt funding instruments in Q1 2023, leading to a higher number of such deals in Series C and above rounds
It seems that the ongoing funding winter just refuses to loosen its grip on the cash-starved Indian startup ecosystem that saw a 75% year-on-year decline in funding in the first quarter (Q1) of 2023.An Inc42 survey suggests that 84% of investors believe it will be challenging to raise capital at the growth stage this year.
According to Inc42’s ‘Indian Tech Startup Funding Report Q1 2023’, Indian startups raised a total of $3 Bn in Q1 2023 as against $12 Bn in Q1 2022.