SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 10 Dec, 2023  

startup.9.thmb.jpg Startup funding crunch continues

   Top Stories
» 28 Indian startups raised over $800 mn in funding this week
» GST Council waives interest, penalty on notices to taxpayers under Section 73
» India's innovation ecosystem poised for exponential growth: Industry
» India's innovation ecosystem poised for exponential growth: Industry
» Overseas Indians faith grows in Indian economy with $1 billion deposits in April
Bikky Khosla | 10 Dec, 2023

The Indian startup sector has continued to face funding crunch. According to data compiled by global market intelligence platform Tracxn, the country slipped to fourth position among the highest-funded geographies in 2023, receiving only $7 billion in total funding till December 5, against third position in both 2021 and 2022. The third quarter performance is even worse─ fifth in the list─ while for the Q4 the figure stands at $957 million to date─ lowest since Q3 2016.

The report shows that only two unicorns─ Incred and Zepto─ were created this year, against a whopping 23 in the previous year. Also, the sector witnessed 36 percent drop in acquisition, from 187 in 2022 to 119 in 2023. It is also important to note that funding activities declined at all stages─ 73 percent in late funding, 70 percent in early-stage funding and 60 percent in seed funding. The retail sector funding fell 67 percent to $1.9 billion compared to 2022.

While these figures are not satisfactory, experts point out that favourable policies taken by the government and rapid growth of the economy will help the sector in the coming years. It is also a positive development that some sectors like environment-tech and space-tech are getting increasing attention from investors, with the former getting $1.2 billion in funding while the latter attracting $122 million in 2023.

As far as the space-tech sector is concerned, there is no doubt that its privatisation has changed the scenario. A group of experts has rightly pointed out that the private sector is increasingly getting involved in activities like research, manufacturing, and fabrication of rockets and satellites. They also viewed that the state-level incubation centres set up by the government is a big step toward pushing the country’s youth to entrepreneurship.

I invite your opinions.
Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
Will the Budget 2024 be MSME friendly
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter