Indian startups raise $3.8 bn in H1 2023, lowest half-yearly funding in 4 years; Saas, D2C, fintech top invested sectors
Indian startups raised $3.8 billion in the first half of 2023 (January to June), falling by a massive 36% as compared to the fundraising in H1 of 2022. This is also the lowest six-month funding in the last four years, as per PwC India research report.
Furthermore, Fintech, SAAS, and D2C continued to be the most funded sectors in H12023. As per PwC's data, Indian startups fundraising stood at $3.8 billion across 298 deals in H1 of 2023, compared to $5.9 billion raised in the first half of 2022.
PwC stated that fintech, SAAS, and D2C continued to be the most funded sectors in H1 CY23 as per the PwC India report titled, “Startup Perspectives - H1 CY23. Amit Nawka, Partner - Deals & India Startups Leader, PwC India, said, “A funding winter is just a season in a startup’s journey.
There is a slowdown in startup funding despite significant untapped capital reserves held by venture capitalists (VCs). Active VC firms in India have secured new funds in the past year and we can expect the pace of investments to pick up in the next few months." Nawka added, "In the interim, there has been an increase in the due diligence being carried out by investors before making investments, both in terms of detailing as well as coverage - from typical finance and legal to areas like technology, HR, and business processes - to ensure that the startups have a robust corporate governance framework." According to PwC's report, during the last few quarters, despite challenging funding market conditions, investors have shown strong support for their portfolio companies by doubling down on their investments in companies that demonstrated positive growth. Here are the details of startup perspectives for H1 2023 as per PwC: Stages of funding:
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