The country saw a decline of 42.9 per cent in VC deal volume, with a corresponding plummet of 72.5 per cent in disclosed funding value compared to the same period in 2022.

India’s venture capital (VC) landscape has experienced a drastic downturn, marked by a considerable fall in funding activity, during January-July 2023, according to a report by GlobalData. The country saw a decline of 42.9 per cent in VC deal volume, with a corresponding plummet of 72.5 per cent in disclosed funding value compared to the same period in 2022. “This unsettling trend, amidst broader economic uncertainties, paints a challenging picture for the country’s startup ecosystem,” said GlobalData.

The GlobalData analysis revealed that VC funding deals volume declined year-on-year from 1,128 to 644. The corresponding disclosed deal value fell YoY from $16 billion to $4.4 billion.

“India is a key APAC market for VC funding activity and stands just next to China in terms of deals volume as well as value. Moreover, it is among the top five global markets for VC funding activity. However, the startup ecosystem in the country is currently facing challenges in raising capital due to dent in investor sentiment,” said Aurojyoti Bose, Lead Analyst, GlobalData.

“The decline of VC funding value by close to one-fourth signals the turbulent times the country’s startups are going through due to increased investor cautiousness amid the prevailing macroeconomic challenges and uncertain market conditions,” he added.

During the January-July 2023 period, India accounted for 5.1 per cent of the total number of VC deals announced globally while its share of the corresponding deal value stood at 3.1 per cent.

Aurojyoti Bose further added that fostering an environment of renewed investor trust and nurturing entrepreneurial ingenuity will be crucial for India’s journey towards revitalizing its venture capital landscape

https://www.financialexpress.com/business/industry-india-vc-funding-sees-drastic-downturn-during-january-july-2023-posts-42-9-decline-in-deal-volume-says-globaldata-3222287/