Indian startups were not spared in the global venture slowdown of Q3 | TechCrunch
The Indian startup ecosystem did not escape the fundraising woes that struck the rest of the world in the third quarter: Startups in the country raised 50% less than they did a year ago and raised less than they did in the second quarter as well, according to private market database Tracxn.
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As we noted last week, venture capital investment hit some big bumps in the last quarter. Still, the declines we’re seeing in terms of deal volume and value in India this year is stark in comparison, especially for a country that’s as populous, online and replete with technical talent as this one. Venture investment totals could clock in at less than $1 billion per quarter if this trend doesn’t reverse in the next quarter or two.
Continuing our deep dive into the venture capital market (web3, Canada, charts) in the third quarter, we’re looking at what’s happening in India today. We’ll start with high-level numbers, then look at sectors, and also hear from Manish Singhal, a partner at deep tech–focused pi Ventures, an Indian VC firm with more than $100 million under management.
Not a great time to be a startup
Per the Tracxn data, Indian startups raised $1.5 billion in the third quarter of 2023, 54% less than the $3.4 billion they raised a year ago, and the total number of deals fell by a massive 71% to 166 in Q3 2023 compared to 592 in Q3 2022.
Those numbers are pretty dismal when compared to the peak times of Q4 2021 and Q1 2022, when startups in the country raised $10.9 billion and $11.8 billion, respectively.
