Amid the distressed funding activity in India, there was a sharp decline in venture capital (VC) deals volume and value. The disclosed funding value of VC deals year-on-year (YoY) declined by 77.8 per cent to $2.7 billion during January to April 2023, according to  GlobalData, a data and analytics company.

GlobalData’s figures for the period show that VC deal volume fell 49.5 per cent YoY to 356 and there were only seven deals valued at $100 million or more, compared to 29 the previous year.

Aurojyoti Bose, lead analyst at GlobalData, said, “Slowdown in VC funding activity may pose a challenge for the country’s startup ecosystem. Increased caution amongst investors is causing a strain on the availability of funding and may create an uncertain environment for aspiring entrepreneurs.”

Some of the notable VC funding deals include the $250 million raised by PhysicsWallah, $200 million by PhonePe, and $120 million by KreditBee.

Also read
ipopba

Builder.ai raises $250 million in Series D funding round

(PIC: Canva)

Investments in Indian agri-food tech declined 33% to $2.4 b in 2022: AgFunder-Omnivore report

Jefferies assigns ‘buy’ rating on Adani Ports and Adani Transmission. (PIC: Canva)

Adani Group surpasses ₹10 lakh crore market cap after clearing Hindenburg allegations

FinMin issues draft rules for angel tax, notifies exempted entities

Bose added that several key markets globally are grappling with challenges associated with a slowdown in VC funding activity and India is not an exception to this global trend. Nevertheless, despite the subdued activity, India continues to be a key APAC market next to China. It accounted for 16 per cent of the VC deals announced in the APAC region during January-April 2023 and 13.1 per cent of the total deal value. 

comment COMMENT NOW