Introducing the 2023 Report on Funding for Indian Tech Startups

2023 proved to be a challenging year for the Indian startup ecosystem, as highlighted in annual "Indian Tech Startup Funding Report." The report indicates that the total funding secured by Indian startups in 2023 amounted to just over $10 billion, marking a seven-year low and falling below the $12 billion raised in 2018.

The number of mega deals during the year also experienced a significant decline, dropping by 61.66% from the 60 mega deals recorded in 2022. Among the top three startup hubs, Mumbai witnessed the most substantial funding decrease at 62%, followed by Bengaluru at 61%, and Delhi NCR at 51%.

The median ticket size reached its lowest point since 2019, plummeting to $2.2 million from $4 million in 2019. Funding for women-led startups saw a staggering 80% decrease, falling to $480 million from the $2.4 billion recorded in 2022.

Investors took measures to reduce the valuations of eight unicorns, including prominent names like BYJU’S, Meesho, and PharmEasy. Overall, the data paints a challenging picture for the Indian startup ecosystem in 2023, with declines in funding, mega deals, and valuations affecting various sectors and regions.