The inflow of funds into Indian startups remained stable in November compared to the previous month. According to data compiled by fintrackr. This also included 23 undisclosed transactions.
This corresponds to the amount raised in October which was $1.26 billion out of 94 transactions.
So far, Indian startups have raised $25 billion in the past 11 months. If the trend continues, this year could end with startups raising around $26 billion in total funding, significantly less than the $38 billion raised in 2021.
Unlike the first half of 2022 when startups almost mopped up $20 billionthe second half saw a sharp decline with a slowdown in the global market.
The decline in funding can be seen in the monthly trend below:
Top 10 Growth Stage Deals
Funding in November would have been much lower had it not been for three SaaS startups such as Icertis, Amagi and Content Stack (with major operations outside of India) that collectively raised $340m to raise the total to more than a billion dollars.
The complete database can be seen here.
Among growth-stage startups, Bira91, Cover Genius, Clove Dental, Healthkart, and Lentra have raised over $50 million each. In total, growth-stage startups raised $942 million of the $1.3 billion in November.
Top 10 start-up deals
Early-stage startups raked in $361 million in November. HRtech startup Keka raised the most with $57 million, followed by green hydrogen startup Hygenco. Rest, including Even, Sukoon, Prismforce, SolarSquare, and Silver Edge, among others, have raised less than $20 million each.
Nearly two dozen startups also announced their funding round without disclosing deal details. While most are in their early stages, B2B e-commerce platform Udaan and EV startup Ultraviolette were among the growth-stage companies.
Offers by segment and by city
Data compiled by fintrackr shows that startup capital Bengaluru again remained in the top spot with $636 million across 51 deals. Delhi-based startups NCR raised around $423m across 39 deals and Mumbai, Chennai and Ahmedabad were next on the list.
In terms of segment, fintech was leading in terms of number of transactions. However, SaaS startups raised more money. Healthtech, D2C and Edtech brands were in the top 5.
More 90 VC, PE and Debt Funds announced the launch of their new fund in July this year, according to a report by Entrackr. Since then, about two dozen other venture capital and debt firms have announced fund launches. The list includes Fundamentum, Stride Ventures, Merak Ventures, Cactus Ventures, Elev8 Venture Partners, StartupXseed, Blacksoil, Kettleborough VC, Fireside, Avatar Ventures, Alteria Capital and IAN.
In November, seven funds including Capital QuonaKae Capital, Transition VC, Yatra Angel Network and Pi Venture have announced their launch.
Dismissals: Layoffs continued to haunt India’s startup ecosystem in November. About eight Indian startups laid off more than 1,200 employees in the past month. While the majority of them were fired for the first time, for Udaan and Unacademy this was their second round of dismissals this year.
Debt financing in growth-stage startups: As in October, debt financing for growth and late-stage startups also continued last month. Udaan and Rebel Foods have raised debt-backed funds in recent months. Dunzo and ReshaMandi also joined the list of growth stage companies in debt financing.
Seed funds continue their new launch: Despite winter funding, venture capital and debt funds continued to announce their new launch. After a drop of August and SeptemberOctober saw 11 fund announcements while seven funds were announced in November.
No unicorn in November: Indian startups failed to create a new unicorn in October as in November. Interesting way, agritech and VE saw no unicorns despite being one of the highest funded segments in 2022. In September, health tech startups Molbio and 1mg entered the club while Zomato-backed Shiprocket achieved status the previous month.
#Indian #Startup #Funding #Holds #Steady #November #Entrackr #Report