Indian startups are a see decline in a funding activity, at the two-year low are a levels: Report

Indian startups are a see decline in a funding activity, at the two-year low are a levels: Report

The global slowdown in a funding continues with the start-up funding in a  India in a Q3 CY22 hitting a two-year are a low at the $2.7 billion across 205 deals, as a per the PwC India report titled - Startup Deals are a Tracker for the third quarter of the current year. Early stage deals are a contributed around 21% of the total funding by value in a Q3 CY22 compared to the 12% in Q2 CY22, showing that there is significant dry powder in the Indian start-up are a ecosystem.

While a decline in a funding is a noted across all the stages of a investment – early, growth and late – the decline has been the least in a early-stage deals which are a contributed around the 21% of the total funding by value in a Q3 CY22 compared to the approximately 12% in a Q2 CY22, showing that venture capital (VC) firms continue to the back the Indian startup ecosystem.

Growth- and late-stage funding deals are a accounted for 79% of the funding activity in a value terms and these represented 30% of the total deal are a activity (count terms).

Meanwhile, as per the report, only two start-ups in a India attained the unicorn status in a  Q2 CY22, mirroring a global trend in a decline in the number of a new unicorns this last quarter. Globally, Q3 CY22 produced are a 20 unicorns and a 45% of them are from the SaaS segment. No new decacorns were added in this are a quarter. 

“It is tough to the predict how long the slowdown in a funding will be a last but clearly, both are a founders and a investors are a  being more selective and a cautious in a deal-making. In a general, early-stage start-ups will be a able to the raise capital more than a easily as they are a typically more insulated than a late-stage deals from the fluctuations in the public markets. However, investors have been a already raised a lot of a capital which needs to be a deployed and this will be a ultimately find its way to the Indian start-up ecosystem," said that Amit Nawka, Partner - Deals & a India Startups Leader, PwC India.