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Indian venture capital (VC) funding landscape has been experiencing subdued activity both in terms of deal volume and volume in 2023. A total of 811 VC funding deals worth $5.5 billion were announced in the country during the first three quarters (Q1-Q3) of 2023. This represents a year-on-year (YoY) decline of 42.3% in terms of VC funding deals volume and a massive 70.4% in term of disclosed funding value, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals that a total of 1,405 VC funding deals were announced in India during Q1-Q3 2022 while the corresponding disclosed value was $18.5 billion.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Although the VC funding deal volume as well as value declined during Q1-Q3 2023 compared to Q1-Q3 2022, the impact was more prominent on the latter. In fact, the total funding value during Q1-Q3 2023 was not even at one-third of Q1-Q3 2022’s level. The total value is still far behind from touching the $10 billion mark even though nine months of the year have already passed.
“Apart from global factors such as Russia-Ukraine conflict and macroeconomic challenges, concerns around startup valuations also seem to be at play in making a dent in investor sentiment and making it look like a prolonged funding winter.”
However, despite the slump in funding activity, India continues to remain a key APAC market for VC funding activity standing just next to China in terms of deal volume as well as value. Moreover, it also ranks among the top five global markets for VC funding activity.
India accounted for 5.3% share of the total number of VC funding deals announced globally during Q1-Q3 2023. Meanwhile, its share of the corresponding deals value stood at 3%.
Some of the notable VC funding deals announced in India during Q1-Q3 2023 include $250 million fundraising by PhysicsWallah, $229 million worth of funding raised by Perfios Software Solutions, $200 million fundraising by PhonePe and $200 million worth of funding raised by Zepto.
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
