Indians startups funding declines 77% to $1.32 BN in Feb

Private equity and venture capital funding to India’s startup ecosystem declined 77% year-over-year in February, Money control reported citing data from Tracxn Technologies. The report stated that the ecosystem saw 91 deals worth $1.32 billion in the month, compared to 308 deals worth $4.77 billion in February 2022. Startups raised $2.91 billion from January to February 2023, it added.

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January saw most of the brunt of it (funding winter), which was also happening through the end of the year. Deal pipelines started to slow down around October and November. Investors began telling portfolio companies to fix their unit economics before raising funds around that time frame.