Indian startup ecosystem is sluggish, India slipped to fourth place in global ranking.

Photo:FILE Startup

Indian startup The pace of development has slowed down. India slipped to fourth place in the global ranking in terms of startup funding in 2023 as it recorded the lowest funding in five years. After ranking third globally in 2021 as well as 2022, India stood fourth this year behind the US, UK and China in terms of total funding (as of December 5), according to data compiled by global market intelligence platform Traxon. ) received only $7 billion.

Continuous decline in funding

In the third quarter of this year, India slipped to fifth place among the most funded countries, behind the US, UK, China and France. Q3 2023 raised a total of $1.5 billion, which is 30 percent less than Q2 2023 and 54 percent less than Q3 2022. The final quarter of this year recorded an all-time funding quarter of $957 million, the lowest funding quarter since Q3 2016.

India Tech’s funding declines every quarter

The report revealed, “India continues to experience the effects of funding winter. After a surge in funding in Q4 2022, India Tech is seeing a decline in funding every quarter, with a sustained decline in funding in Q3 2023.” “With the third decline, it has become the least funded quarter in 2023 and also the least funded quarter in the last 5 years.” Despite the decline in funding flows, India has retained its position among the top 5 geographies in terms of total funding this year.

Funding declined at all stages

For 2023, funding declined across all stages, with late-stage funding falling by more than 73 percent, followed by early-stage funding (70 percent) and seed-stage funding (60 percent). This decline is primarily due to the largest decline in late-stage funding, which increased by more than 73 percent from $15.6 billion in 2022 to $4.2 billion in 2023. The number of rounds above $100 million was recorded at only 17, a 69 percent decline from the previous year, the report said.

Input: IANS

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