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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.

PE fund ChrysCapital invests $100 million in eyewear retailer Lenskart

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.

  • Published On Dec 11, 2023 at 07:20 PM IST

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