India has experienced a surge in startups and funding, with over 16,000 new tech companies added in 2020. Despite funding obstacles, investment firms have shown confidence in Indian startups, with a total funding of $8.4 billion in 2023.
New-age tech companies raised a total of $409 million in November across 63 rounds, according to data from market research firm Tracxn. Overall funding for the month was down 40% in terms of value compared to a year earlier, when startups raked in $682 million from 136 rounds.
Indian startup funding declined by 72% in H1 2023 compared to the same period last year, with $5.5bn in total funding. The number of funding rounds also decreased. However, India is still a fast-growing economy with potential for growth, particularly in the electric vehicle sector.
One of India’s biggest venture capital firms is turning more cautious in its investment strategy, alarmed by crises at homegrown startups such as ed-tech leader Byju’s.