[ad_1]
Funding for Indian start-ups fell by $ 24 billion in the calendar year 2022, a drop of 33 per cent in comparison to 2021 but was still more than twice the funds raised in 2020 and 2019 each.
According to a PwC India report, early-stage funding grew by 12 per cent as compared to 2021, showing that despite the global slowdown, investors are still positive about the Indian start-up ecosystem. Additionally, the SaaS segment witnessed an increase of 20 per cent in funding values during 2022 compared to 2021 and accounted for nearly 25 per cent of all funding activity in 2022.
Early-stage deals accounted for 60–62 per cent of the total funding in 2021 and 2022 (in volume terms), the report said. Average ticket size per deal was USD 4 million per deal. In value terms, early-stage deals contributed to approximately 12 per cent of the total funding in 2022 compared to nearly 7 per cent in 2021. “Growth- and late-stage funding deals accounted for 88 per cent of the funding activity in 2022 (in value terms). These represented 38 per cent of the total count of deals. Average ticket size in growth-stage deals was USD 43 million and late-stage deals were USD 94 million during 2022,” PwC said.
Amit Nawka, Partner – Deals & India Startups Leader, PwC India, said, “Despite the funding slowdown, some areas like SaaS and early-stage funding have remained upbeat. With significant dry powder waiting to be invested, it seems likely that the funding scenario will begin to normalise after 2-3 quarters. Until then however, many start-ups are using this time to tighten operating models and optimise their cash runway by deferring discretionary spends and investments.”
According to PwC India, a 17 per cent decline was witnessed in M&A deals during 2022 compared to 2021 in terms of deal volume, with 60 per cent of the transactions being contributed by the top three sectors – SaaS, e-commerce+D2C and EdTech. E-commerce and D2C (61) and SaaS (60) witnessed the highest number of M&A transactions during 2022.
In city-wise start-up funding, Bengaluru, NCR and Mumbai account for nearly 82 per cent of total Indian start-ups as of December 2022. “28 per cent of the start-ups in the top three cities have raised in excess of USD 20 million. Bengaluru witnessed the highest number of unicorns, followed by NCR and Mumbai. Similar trends have been noted for other companies that have raised more than USD 50–100 million,” it said.
Bengaluru got $ 679 million start-up funding and NCR $ 466 million.
[ad_2]
Source link