According to a report released on Wednesday, funding for Indian startups in CY22 was approximately $24 billion, a 33% decrease from CY21 but still more than twice the amounts raised in CY20 and CY19, respectively.
Early-stage acquisitions amounted for 60-62 percent of overall capital in fiscal years 21 and 22. (in volume terms). According to PwC India, the average ticket amount per contract was $4 million.
“With large dry powder on the table, it is likely that the funding landscape would begin to normalize within 2-3 quarters,” said Amit Nawka, Partner-Deals and India Startups Leader at PwC India.
Many businesses are taking advantage of the current period to tighten their operational models and maximize their financial runway by postponing discretionary spends and investments, he noted.
The software-as-a-service (SaaS) segment had a 20% rise in financing values during CY22 compared to CY21, accounting for roughly 25% of all funding activity.
Growth and late-stage funding transactions accounted for 88% of funding activity in CY22 (in value terms).
During CY22, the average ticket size in growth-stage deals was $43 million and $94 million in late-stage acquisitions.
Nearly 82% of all Indian startups are based in Bengaluru, Delhi-NCR, or Mumbai.
According to the research, over 28% of companies in the top three locations have raised more than $20 million.
