India’s startup ecosystem faced a funding decline of 65.8%, raising only $6.9 billion across 1,013 venture capital (VC) deals during January-November 2023, compared to $20.2 billion in the previous year. A report by GlobalData reveals that the US also experienced a decline of 42% in deals volume and 44% in deals value. Despite the challenging funding winter, Indian startups remain optimistic as VC firms still find India an attractive market.
Private equity firms are increasingly investing in Indian IT services, Dunzo is facing a funding crunch and delaying employee salaries, PhonePe is entering the stockbroking space, and the Indian fintech sector is expected to reach a value of $400 billion by 2030.
