According to Inc42’s ‘Indian Tech Startup Funding Report Q3 2022,’ the funding decline in the Indian startup ecosystem continued for the fourth consecutive quarter, with startups raising $3 Bn during July-September 2022, roughly 50% less than the previous quarter.
The massive correction has reduced startup funding in India to levels seen in 2020, demonstrating how the funding winter is wreaking havoc. The funding raised in Q3 2022 was 82% less than the $17.1 billion raised by Indian startups in Q3 2021. The funding decline began in the fourth quarter of 2021, when startup funding fell 15% quarter on quarter (QoQ) to $14.5 billion. Since then, startup funding has been steadily decreasing. At the same time, funding deals have fallen precipitously in recent quarters. The number of funding transactions peaked in Q1 2022, with 506 transactions completed between January and March 2022. In, the number of transactions fell by more than a third to 334.