Startup funding dwindles by 17% to $6 billion in April-June: Nasscom
Premium- Nasscom said that 52% of funding was in the ticket size of $100 million or above with Dailyhunt and ShareChat raising big rounds
Early-stage funding for startups is drying up due to dampened market sentiments. According to a report by industry body Nasscom, funding in startups dropped by 17% to $6 billion on a quarter-on-quarter basis to about ₹47,800 crore, in the April-June period.
According to the Nasscom quarterly investment factbook on tech startups, deals also dropped by about 17% due to dampened market sentiments but despite the reduction in deal value, funding in the growth stage continued to increase.
"16 large ticket size deals helped generate total funding of $6 billion in the second quarter (Q2) of calendar year (CY) 2022. Startup ecosystem witnessed the birth of 4 new unicorns in Q2 CY22, taking the tally to 20 unicorns in the first half," the report said.
Around 26% of the total funding went to the fintech segment, the report mentioned.
"Large ticket deals like CRED and Dailyhunt resulted in an overall increase in total investments in fintech and media and entertainment sectors, contributing around 45% of total funding in Q2, CY22," the report added.
52% of funding was in the ticket size of $100 million or above with Dailyhunt and ShareChat raising big rounds.
Growth stage deals contributed 58% of the total funding during the reported quarter as the investors-backed startups have already reached a certain scale, it said.
Separately, as per the report by Tracxn, a market intelligence platform, Indian startups raised a total of $6.9 billion in the second quarter of the year 2022 declining by 33% sequentially.
The fundraiser in Q2 2022 was lower from the fundraising of $10.3 billion in January to March 2022 quarter and from $10.1 billion in the same quarter last year.
As per the Tracxn data, the top startups were VerSe ($805 million - Series J), Delhivery ($304 million- Series J), and udaan ($275 million- Series D). They were followed closely by ShareChat ($255 million- Series G) and upGrad ($225 million- Series F).
In the report titled 'Tracxn Geo Quarterly Report: India Tech Q2 2022', it was noted that 121 new startups closed their first funding rounds, four startups turned unicorns, 62 startups got acquired and 5 launched their IPOs (Initial Public Offerings).
New unicorns like Leadsquared, Purplle, PhysicsWallah, and Open witnessed their valuation swell up to $31.8 billion in the past quarter (Q2 2022). Startup funding dwindles by 17% to $6 billion in April-June: Nasscom
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