The entire funding raised by Indian startups in just-ended June quarter fell 33 per cent sequentially to USD 6.9 billion, in line with a report by market intelligence platform Tracxn.
The capital elevate throughout the quarter was not simply decrease than USD 10.3 billion logged between January and March 2022, but in addition marked a decline when in comparison with the identical quarter of earlier 12 months (USD 10.1 billion in Q2 of 2021).
The funding appears to have cooled off the earlier excessive, witnessed in Q3 2021, the report stated, whereas indicating a ”main consensus amongst market gamers of a ‘winter of funding’ or a downturn in buyers’ confidence and sentiments in the direction of funding startups”.
In line with the report, Indian startups raised USD 6.9 billion in Q2 2022 (April-June) in 409 funding rounds.
”… the highest startups being VerSe (USD 805 million – Sequence J), Delhivery (USD 304 million- Sequence J) and udaan (USD 275 million- Sequence D). They have been adopted intently by ShareChat (USD 255 million- Sequence G) and upGrad (USD 225 million- Sequence F),” the report stated.
Social platforms, web first media, funds, business-to-business e-commerce and e-commerce enablers have been the highest sectors that attracted the utmost funding from buyers between April and June 2022.
The report ‘Tracxn Geo Quarterly Report: India Tech Q2 2022’ famous that 121 new startups closed their first funding rounds, 4 startups turned unicorns, 62 startups bought acquired and 5 launched their IPOs (Preliminary Public Choices).
With Leadsquared, Purplle, PhysicsWallah, and Open changing into new unicorns, the full valuation of unicorns swelled to USD 31.8 billion prior to now quarter (Q2 2022).
”GOAT Model Labs, Fashinza, and Itilite entered the soonicorn membership with fundraises of USD 88 million, USD 135 million, and USD 47.2 million respectively. With respect to exits, whereas eMudhra, Delhivery, Handicrafts village, Eighty Jewellers, and Veranda Studying Options filed for IPOs, Blinkit (By Zomato), Whiteteak (By Asian Paints), and MyHQ (By ANAROCK) have been the highest acquisitions,” it additional stated.
The Q3 2021 noticed investments topping the charts, grossing USD 15 billion in funding rounds ”which hasn’t been surpassed in current occasions”.
”It is resulting in the most important consensus amongst market gamers of a ‘winter of funding’ or a downturn in buyers’ confidence and sentiments in the direction of funding startups,” it stated.
The ‘funding winter’ is a results of the market slowdown and financial volatility based mostly on the present macroeconomic situations and geopolitical scenario that is intensifying inflation, rates of interest and commodity costs.
Bengaluru, Delhi and Mumbai are the highest cities attracting the utmost investments, as per the report. Whereas IPV and Blume Ventures topped the funding charts in seed-stage startups, Sequoia Capital and Accel ranked highest within the early-stage startups funding. Sofina and DST World are the main late-stage institutional buyers, the report stated.