Wednesday, 11 January 2023 – Funding for Indian startups in CY22 was nearly USD 24 billion, a drop of 33% in comparison to CY21 but was still more than twice the funds raised in CY20 and CY19 each. As per the PwC India report titled, “Startup Deals Tracker - CY22”, early stage funding grew by 12% as compared to CY21, showing that despite the global slowdown, investors are still positive about the Indian start-up ecosystem. Additionally, the SaaS segment witnessed an increase of 20% in funding values during CY22 compared to CY21 and accounted for nearly 25% of all funding activity in CY22.
Amit Nawka, Partner - Deals & India Startups Leader, PwC India, said, “Despite the funding slowdown, some areas like SaaS and early-stage funding have remained upbeat. With significant dry powder waiting to be invested, it seems likely that the funding scenario will begin to normalise after 2-3 quarters. Until then however, many start-ups are using this time to tighten operating models and optimise their cash runway by deferring discretionary spends and investments.”
Startup Perspectives for CY22 – A snapshot
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