Indian Tech Startup Funding Report Q1 2023

The Indian startup ecosystem has been a hub of innovation and investment, attracting significant capital infusion from both domestic and international investors and garnering global attention in recent years.

However, the first quarter of 2023 witnessed a sharp decline in investments, with total capital raised dropping by a staggering 75% compared to Q1 2022.

Despite this setback, Indian startups were still able to raise a substantial $3 Bn in Q1 2023, which is consistent with the $3 Bn range recorded in the previous two quarters (Q4 & Q3 2022).

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Indian Tech Startup Funding Report Q1 2023

Quoted & Trusted By

the economist
business insider
cb insights
the huffington post
the economic times
live mint
the times of india

Key Highlights

$3 Bn

Total Funding In Q1 2023


Year-On-Year Decrease In Mega Deal Count


The Number Of Unicorns Minted In Q1 2023


Of Indian VCs Voted High Difficulty In Raising Growth-Stage Capital

Table Of Contents

  • India's Digital Economy In A Nutshell
  • Indian Startup Funding & Deals Landscape
  • Indian Startup Funding Overview
  • Indian Startup Funding [Q1 2023]
  • Mega Deals Landscape
  • Median Ticket Size
  • Top Startup Funding Rounds
  • Top Sectors
  • Top Hubs
  • Stagewise Outlook
  • Debt Funding Overview
  • Startup M&As Overview
  • India’s Top Startup Investors [Q1 2023]
  • Indian Investors On Startup Funding, Exits & More [Inc42 Survey]


The decline in mega-deals coupled with global economic uncertainty has had a severe impact on investor confidence in Indian startups during Q1 2023. The total funding amount in this quarter has plummeted by a staggering 75% compared to Q1 2022. A similar trend has been observed in seed and growth-stage investments, with a correction of 81% and 76% respectively. In addition, 85% of Indian VCs anticipate difficulty in raising capital at growth stages, while 65% of angel investors predict the same for the early stage. This sharp drop in venture capital inflow has resulted in no new unicorn startups emerging in the past two quarters (Q1 2023 & Q4 2022). The current year, after two years of easily accessible funds, appears to be a time of correction for the Indian startup ecosystem.

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