Despite economic uncertainty, Indian startups raised $25 Bn in 2022, with a 40% decrease from the $42 Bn raised in 2021. However, capital inflows were 2.1X higher than in 2020.
The year 2022 saw an increase in venture capital investments outside of the top three startup hubs of Bengaluru, Delhi NCR, and Mumbai, with emerging startup hubs witnessing a 41% surge in funding. In contrast, aggregate capital inflows in the top three startup hubs decreased by 48% due to a decline in mega deals.
Inc42’s annual Indian tech startup funding report decodes the funding climate, insights on M&As, founders and investors’ outlook on the future.
Inc42's Annual Indian Startup Founder & Investor Survey
Trends & Predictions For 2023
Summary
The year 2022 stood out as a year of correction and consolidation for Indian startups, as venture capital investments fell 40% year on year while M&A reached an all-time high. This trend is expected to continue in the coming year, as established startups compete for market share and investors seek exits and liquidity.
However, there are also positive indicators for the future, including the fact that Indian founders plan to ramp up spending on marketing and talent in order to expand their reach, and investors intend to increase their investments in sustainable businesses in 2023 compared to 2022.
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