Indian startups raised 6 billion dollars

Indian startups raised $6 Bn in H1 2023; no new unicorns: Entrackr Report Fundraising for Indian startups remained difficult in the first half of 2023. This can be linked to difficult market conditions, a shortage of larger rounds due to the absence of key investors such as Tiger Global and Softbank, and widespread layoffs throughout the ecosystem. According to data provided by Entrackr analytics platform Fintrackr, Indian entrepreneur raised $6 billion funding during the first half of the year, compared to $20 billion in the first half of 2022.

The $6 billion in funding was made up of 96 growth/late stage deals totaling $4.48 billion and 417 early-stage deals totaling $1.54 billion. Meanwhile, 73 startups have not disclosed the facts of their transactions. While entrepreneurs targeted mind-boggling valuations in recent years, profitability has been a primary priority this year. As a result, in the first six months of 2023, there were no unicorns. In fact, India's last unicorn was revealed in September 2022, when healthcare testing business Molbio announced a $1 billion financing. [Month-on-month and year-on-year trend] While this is a significant decrease from $20 billion in H1 2022, local enterprises managed to surpass the $5 billion threshold in H2 2022. Despite having the third greatest number of deals, June had the lowest monthly funding of $636 million. This is also the month with the lowest financing in the last two and a half years (since January 2021). Overall, average monthly funding stood at $1 billion, setting a new standard for the previous 12 months. The funding increase and decrease are shown in the graph below:

[Top 25 growth stage deals in H1, 2023] Entrackr has compiled a list of the top 25 funded businesses in both growth and early stages in order to analyse the trend of startup funding. With capital distributed over 4 tranches totaling $850 million, fintech company PhonePe led the leaderboard. The eyewear company Lenskart came next, collecting $600 million in two deals. Importantly, these two were the exceptions to this year's rule on soliciting money in more than one round.

Each of the following companies raised at least $100 million: the supply chain firm Mintifi, the e- commerce platform for meat FreshToHome, the fintech platform DMI Finance, the edtech company Byju's, the fintech lending platform KreditBee, and the fintech company Stashfin. IoT startup Atomberg and foodtech startup Drools both made the list by raising more than $50 million. [Mergers and acquisitions] 81 merger and acquisition transactions have been completed so far this calendar year. If we look at the trends from the previous year, it is less than 250 mergers and acquisitions in 2021 and 204 deals in the previous year. The acquisition of Build On Scenes by Unacademy's Graphy, Ustraa by VLCC, Trainman by Adani Digital, Chumbak by GOAT brand Labs, and Upwards by Lendingkart made headlines in the first half of the year despite the absence of any major merger and acquisition deals. Most of the transactions were secret.

Conclusion Despite some noteworthy missteps in the startup environment, such as inflated valuations and fraud, venture capitalists must increase due diligence. However, as compared to total transactions, these occurrences are still in the minority. The market will most certainly return with real growth, value- driven enterprises, and intriguing startups. However, recent VC fund raises have been more conservative, limiting the funding available to Indian startups with global ambitions. Global expansion is critical for achieving growth and profits, especially in underserved industries such as manufacturing. This transformation is required for India's future development. For more information regarding this content you may visit HERE