April-June quarter witnessed $6.9B in funding, 409 funding rounds and 68 exits.
Tracxn, a SaaS-based market intelligence platform, announced the launch of its report titled Tracxn Geo Quarterly Report: India Tech Q2 2022. The report is Tracxn’s quarterly proprietary document that tracks the Indian startup ecosystem by delineating the funding raised by startups, investors’ exits through acquisitions and IPOs, and the wider trends of the fundraising landscape.
According to the report, Indian startups raised $6.9B in Q2 2022 (April-June) in 409 funding rounds, the top startups being VerSe ($805M- Series J), Delhivery ($304M- Series J), and udaan ($275M- Series D). They were followed closely by ShareChat ($255M- Series G) and upGrad ($225M- Series F). Social Platforms, internet first media, payments, B2B E-commerce and E-commerce enablers are the top sectors receiving the most funding from investors between April and June 2022.
Some of the key highlights of the report include 121 new startups closed their first funding rounds, 4 startups turned unicorns, 62 startups got acquired, and 5 filed their IPOs.
The total funding raised this quarter declined by 33% from $10.3B in Q1 (Jan-Mar) to $6.9B in Q2. It also witnessed a decline in comparison to the same quarter last year (Q2 2021), where the total funds raised were $10.1B. Q3 2021 investments topped the charts with $15B in funding rounds, which hasn’t been surpassed in recent times. It’s leading to the major consensus amongst market players of a ‘winter of funding’ or a downturn in investors’ confidence and sentiments towards funding startups. Funding winter is a resultant of the market slowdown and economic volatility based on the current macroeconomic conditions and geopolitical situation that’s intensifying inflation, interest rates, and commodity prices.
“Though investors are a little wary due to the current environment it hasn’t dampened the investment spirit of the community. They have become more decisive about the startups they want to nurture and are focusing extensively from a long-term gain perspective. Our in-depth monitoring of the Indian startup space is compiled into a quarterly report to not only track the progress of VC and PE investments, but to also provide insights on emerging practice areas," said Abhishek Goyal, Co-Founder, Tracxn.
Bangalore, Delhi, and Mumbai are the top cities attracting the maximum investments, as per the report. While IPV and Blume Ventures topped the investment charts in seed-stage startups, Sequoia Capital and Accel ranked highest in the early-stage startups funding standing. Sofina and DST Global are the leading late-stage institutional investors.