New Delhi: Indian tech startups have seen a decline of about 72 per cent this year, making it the lowest- funded year in the last five years, according to a report by market intelligence firm Tracxn.
The last quarter of this fiscal year has been marked as the lowest-funded quarter since Q3 of 2016, bringing India drop from 4th to 5th place among the highest-funded geographies this year.
Further, the reason for the drop highlighted under the report is the drop in last-stage funding.
“While the funding slowdown in 2023 presents challenges for the Indian tech startup ecosystem, we remain optimistic about the future. With favourable government policies and a fast-growing economy, we believe India is well-positioned for success in the years to come.” said Neha Singh, co-founder, Tracxn.
Some of the top-funded companies in the tech sector are FinTech, PhonePe, Perfios, Insurancedekho and Kreditbee.
While the Retail sector marked a 67 per cent drop in funding from last year, Lenskart came as the top-funded company in this sector this year.
In March, Abu Dhabi Investment Authority (ADIA), the Gulf Sovereign wealth fund (SWF), had invested $500 million in the company.
Despite the slowdown, the government with its schemes anticipates the growth of the Indian startup ecosystem in the near future, said the report.
