Indian startups raised $6.9 billion in June quarter, a 33 % sequential decline

8 Jul 2022 , 01:39 PM

In Q2CY22 (April—June), Indian startups raised $6.9 billion in 409 funding rounds. According to Tracxn Geo Quarterly Report: India Tech Q2 2022, the amount of financing raised during the quarter fell by 33% from the $10.3 billion raised in Q1CY22.

Additionally, start-up financing fell from $10.1 billion on a year-over-year (YoY) basis. According to the Tracxn analysis, the slowdown in fundraising activities has caused market participants to agree that there is currently a “winter of financing,” or a decline in investors’ confidence and mood towards investing in start-ups. Due to the market lull and economic turbulence brought on by the present geopolitical and macroeconomic circumstances, which are escalating inflation, interest rates, and commodity prices, funding winter is a challenge.

“The present situation has made investors a little more cautious, but this hasn’t affected the community’s enthusiasm for investing. They are concentrating intensely from a long-term gain standpoint and have grown more determined about the start-ups they want to develop. Each quarter, we collect the results of our in-depth research into the Indian startup scene into a report that tracks the performance of VC and PE investments and offers insights into new practice areas “proclaimed Tracxn co-founder Abhishek Goyal.

The three most successful start-ups in terms of funding this quarter were VerSe ($805M- Series J), Delhivery ($304M- Series J), and Udaan ($275M- Series D). ShareChat ($255M-Series G) and upGrad ($225M-Series F) were just behind them in terms of funding.

“Winter will likely last another year, in our opinion. But this gives us a terrific chance to invest money in amazing startups with fantastic entrepreneurs, “Vinay Bansal, founder, and CEO of Inflection Point Ventures added (IPV). According to Tracxn, the fund is among the seed-stage categories’ most active funds.