Decoding India's Tech Pulse: India's 2023 Funding Report Card

India's tech startup ecosystem is grappling with a significant 72% funding decline in 2023, reaching a 5 year low. Explore the report to uncover insights. How does India's tech funding performance measure up on the global stage? Read on to explore.

Swati Dayal
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The Tech Turbulance

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The Indian tech startup ecosystem has experienced a substantial decrease in funding this year, recording a total of $7 billion compared to the previous year's $25 billion. This marks a significant decline of 72%, making it the least funded year in the last five years. According to Tracxn Geo's quarterly report, the last quarter (Q4) particularly stands out, securing the lowest funding to date at $957 million. This makes Q4 the least funded quarter since Q3 2016.

As of 2023, India's Performance in the Global Tech Funding Scene stood at the fourth position. The top countries by funding are led by the United States, boasting an impressive $107 billion, followed by the United Kingdom with $12 billion and China with $11.5 billion. India secures its spot in the top four, demonstrating substantial growth in the tech funding sector with $7 billion.

Indian Funding Report

In the dynamic landscape of global technology funding, India has secured its position with a $7 billion in funding, marking a notable presence on the international stage. The Tracxn Report on India Tech vs. Major Geos Performance for 2023 reveals key insights into the funding dynamics and performance metrics, positioning India as a significant player in the tech investment arena.

Metrics Comparison - India Vs Global Tech Hubs

Breaking down the metrics, India's $7 billion in funding stands in contrast to the global total of $189.2 billion. In terms of the percentage of global funding, India captures a solid 4%, ranking fourth globally. The United States dominates with a commanding 56% share, while Europe and China follow with 21% and 6%, respectively.

Funding Report

Funding Rounds and Emerging Trends

India showcases its vibrancy in the tech ecosystem with a total of 1000 funding rounds. Noteworthy is the emergence of 387 first-time funded companies and 283 Series A+ rounds, underlining the robust startup culture within the country. The report also identifies two new unicorns born in India, contributing to the global tally of 58.

Mergers, Acquisitions, and IPOs in 2023

India's tech sector is marked by a significant number of acquisitions, standing at 119, showcasing a vibrant market for consolidation. Furthermore, 18 IPOs in 2023 highlight the maturation of Indian tech companies, with a total of 130 globally.

The Tracxn Report underscores India's remarkable performance in the global tech funding landscape, with promising trends in funding rounds, unicorn creation, acquisitions, and IPOs. As India continues to shape the future of technology, the nation's tech prowess is increasingly becoming a focal point for global investors.

India Tech Snapshot - 2023 Reveals Dynamic Landscape and Shifting Trends

India Teach Snapshot

India Tech All-time Stats- The Changing Dynamics

The report indicates a 72% decrease in total funding, a 63% drop in the number of funding rounds, and a 67% decline in Series A+ rounds. Despite these shifts, there are positive signs, including 387 first-time funded companies, 47 new additions to the soonicorn club, and 2 emerging unicorns.

In the latest India Tech Snapshot for 2023 by Tracxn, the Indian tech ecosystem reflects unprecedented transformation. With a comprehensive coverage of 121,067 companies, the report unveils that a total of 9,556 companies have received funding, amassing a staggering $161 billion in total funding. Over the last 24 months alone, $32.8 billion has been injected into the Indian tech sector. Notably, the cumulative valuation of all unicorns has soared to an impressive $217 billion.

India Stats

Top Cities in Tech Funding

In the realm of tech funding, Bengaluru reigns supreme with a staggering $2.8 billion, followed closely by Mumbai at $1.3 billion. Gurgaon secures a notable $953 million, while Delhi and Pune trail with $313 million and $251 million respectively. These funding figures spotlight the dynamic financial landscape across major Indian cities in the tech sector.

Top Cities Funding

Exits and IPOs

The report details 1,730 acquisitions and 215 IPOs, signifying a robust exit environment in the Indian tech sector.

Breaking down the tech landscape, the report categorizes companies into various segments, including 94 unicorns, 355 soonicorns, and 1,129 minicorns. Additionally, 7,074 companies are highlighted as Editor's Picks, demonstrating their unique contributions to the industry. Notably, 34,848 companies have faced the unfortunate fate of being deadpooled.

Top Funding Rounds

The report highlights some of the most significant funding rounds, with Lenskart leading the way with a massive $500 million in Series J funding. Other notable rounds include PhonePe's $350 million in Series D, Perfios securing $229 million in Series D, and Zepto raising $200 million in Series E.

Top Feeds - The Top Performing Sectors in The Report

In terms of sectors, electric vehicles lead with a remarkable $1.0 billion in funding, followed by payments at $867 million, alternative lending at $808 million, fashion tech at $753 million, and online grocery at $498 million.

The Tracxn’s India Tech Snapshot for 2023 paints a dynamic picture of the industry, showcasing both challenges and opportunities in this rapidly evolving landscape.

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