More than a 100 new startups closed their first funding rounds, four turned unicorns, 62 got acquired, and five filed their maiden offers between April and June. That, even as the total funding declined.
Indian startups raised $6.9 billion (about Rs 54,600 crore) across 409 funding rounds in the second quarter of this calendar year, down 33% from the January-March 2022 period as well as a year ago, according to a statement by Tracxn—a platform that tracks startups.
Among sectors that that received the most funding from investors between April and June were social media platforms, payments and e-commerce enablers.
The decline in funding is “leading to the major consensus among market players of funding winter”. That, according to Tracxn, is due to the market slowdown and economic volatility based on the current macroeconomic conditions and geopolitical situation intensifying inflation, interest rates, and commodity prices.
Key Highlights
121 new startups closed their first funding rounds in April-June.
Four startups turned unicorns—Leadsquared, Purplle, PhysicsWallah, and Open. With these, the total valuation of unicorns escalated to $31.8 billion (Rs 2.5 lakh crore) during the quarter.
Of the 62 startups that got acquired, Blinkit (by Zomato), Whiteteak (by Asian Paints), and MyHQ (by ANAROCK) were the top buys.
Five filed their initial public offerings—eMudhra, Delhivery, Handicrafts village, Eighty Jewellers, and Veranda Learning Solutions.
G.O.A.T Brand Labs, Fashinza, and Itilite entered the ‘soonicorn' club by raising funds worth Rs 700 crore, Rs 1,060 crore, and Rs 370 crore, respectively.
Bengaluru, Delhi, and Mumbai are the top cities attracting the maximum investments.
IPV and Blume Ventures topped the investment charts in seed-stage startups.
Sequoia Capital and Accel ranked highest in the early-stage startups funding.
Sofina and DST Global are the leading late-stage institutional investors.
“Though investors are a little wary due to the current environment, it hasn't dampened the investment spirit of the community. They have become more decisive about the startups they want to nurture and are focusing extensively from a long-term gain perspective,” Abhishek Goyal, co-founder at Tracxn, was quoted as saying in the statement.
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