Another report hinting at tougher times for the startup ecosystem in India is here. Recently released Nasscom quarterly investment factbook on startups, especially tech startups compiled with the aid of PGA Labs, says that the funding in startups has plummeted by 17 per cent on a quarter-on-quarter basis to USD 6 billion, which is about INR 47,800 crore) in the April-June quarter.
According to the Nasscom report, deals have also dropped by about 17 per cent due to bearish market sentiments. but despite a reduction in deal value, funding in the growth stage continued to increase. The report said, “16 large ticket size deals helped generate total funding of USD 6 billion in the second quarter (Q2) of the calendar year (CY) 2022. Startup ecosystem witnessed the birth of 4 new unicorns in Q2 CY22, taking the tally to 20 unicorns in the first half.”
It is estimated that about twenty-six per cent of total funding to startups, went to the fintech segment alone. The report says “Large ticket deals like CRED and Dailyhunt resulted in an overall increase in investments in fintech and media and entertainment sectors, contributing around 45 per cent of total funding in Q2, CY22,”.
“Fifty-two per cent funding was in the ticket size of USD 100 million or above with Dailyhunt and ShareChat raising big rounds. Growth stage deals contributed 58 per cent of the total funding during the reported quarter as the investors-backed startups have already reached a certain scale”, the report said.