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India sees lowest tech funding in the last five years in Q3: Report


India sees lowest tech funding in the last five years in Q3: ReportSeptember 27, 2023Bengaluru, Sep 27 (IANS) India saw a third consecutive drop in tech funding in a quarter this year, with the July-September period (Q3) becoming the least-funded quarter in the last five years, a new report showed on Wednesday.Q3 2023 saw a significant drop in funding, with a total of $1.5 billion raised, marking a 29 per cent decrease from the previous quarter and a staggering 54 per cent decline compared to Q3 2022, according to data from market intelligence firm Tracxn.Late-stage rounds witnessed a 33 per cent reduction, while early-stage and seed-stage funding plummeted by 74 per cent and 75 per cent, respectively, compared to the same quarter last year.The third quarter witnessed five funding rounds exceeding $100 million, including companies such as Perfios, Zepto, Ola Electric, Ather Energy, and Zyber 365, with Perfios leading the way with a Series D round of $229 million.Only two unicorns were added in Q3 — quick grocery delivery platform Zepto and Web3 and AI-based OS Zyber 365 — representing a 50 per cent decline compared to the previous year.“Despite facing the challenges of a funding winter, India ranks as the fifth highest funded country in Q3 2023 and maintains its fourth-place position in terms of total funding for the year to date (YTD),” said Neha Singh, Co-Founder, Tracxn.Fintech sector witnessed 68 per cent growth from the previous quarter due to wider and rapid adoption of UPI in domestic and international marketsAdditionally, there were 33 acquisitions during the quarter, a 13 per cent decrease from Q3 2022.“A promising sign is the month-on-month funding growth, with an impressive 91 per cent increase from $376 million in August 2023 to $720 million in September 2023,” said Abhishek Goyal, Co-Founder, Tracxn.Bengaluru emerged as the leader in total funds raised during Q3, followed closely by Mumbai and Noida, reaffirming the significance of these tech hubs in India’s startup landscape.Top investors in Q3 2023 included Accel, Blume, and Peak XV Partners. IPV,100X.VCand Titan Capital led the seed investments, while Elevation, Tiger Global Management, and Accel were prominent in early-stage investments.–IANSna/dpbhttps://ians.in/detail/india-sees-lowest-funding-in-the-last-5-years-in-q3-report–20230927155105/

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