According to a report by Entrackr, Indian startup funding fell below $500 million in July 2023. This is the lowest monthly funding figure since January 2021.
The report also found that there were only 118 funding deals in July, which is down from 143 deals in June.
The decline in startup funding is being attributed to a number of factors, including the global economic slowdown, the war in Ukraine, and rising inflation. These factors have made investors more cautious about investing in startups, especially at later stages.
Despite the decline in funding, there were still some notable deals in July. For example, edtech startup LeverageEdu raised $40 million in a Series D round, and insurtech startup RenewBuy raised $40 million in a Series C round.
It remains to be seen how the funding landscape for Indian startups will evolve in the coming months. However, the current slowdown is a reminder that startups need to be prepared for a more challenging environment.
Here are some additional details from the Entrackr report:
- The average deal size in July was $4.2 million, down from $5.1 million in June.
- The top three sectors for startup funding in July were edtech, insurtech, and fintech.
- The top three cities for startup funding in July were Bengaluru, Delhi-NCR, and Mumbai.
The decline in startup funding is a significant development, but it is important to note that the Indian startup ecosystem is still relatively young and dynamic. It is possible that the funding landscape will improve in the coming months, as investors become more comfortable with the current economic conditions. However, startups need to be prepared for a more challenging environment in the near term.