During 2023, growth and late-stage startups chose to defer fundraising, and investors took their foot off the gas pedal owing to rising interest rates, leading to the number of mega rounds (those over $100 million) falling to only 15, compared to 48 in 2022.
While the allocation of funds typically happens between December and January, this year the allocation announcement is still pending, industry insiders said. With the general elections round the corner, the industry is worried that the allocation and the subsequent disbursal of funds could be further delayed.