The winter for funding is arriving as per data felt by the Indian startups. Between January and May of 2022, almost $ 13. 3 billion is acquired from funding by the startups.
India is ranking third as the startup ecosystem in the country where it clocked 101 unicorns uptil now. The several grants from the government and investments from venture capital firms like Sequoia Capital, Tiger Global, Prosus Ventures and several others are strengthening the playground for these startups to thrive in the market.
In May, Zepto bagged a funding of about $ 200 million and Aether recorded about $ 128 million. But although the month of May had some roadblocks when considering fundings being raised, India has still brought more unicorns to us than last year.
Global Data, a data analytics and consulting firm states in a report that about only $ 2 million secured as fundings from the investment groups. Venture Capital firms are tightening their pockets when investing in a startup is coming to a picture.
Business Outreach Magazine feels that the global market facing a downward graph of the economy might be a factor. Open, a neobanking startup was the only unicorn to be valued at $ 1 billion in the month of May. After China, the Indian startups stand strong in terms of the value of venture capital investments in the region of Asia Pacific.
The war between Ukraine and Russia, leading to oil and energy crisis and an extended recession are the added factors to these funding halt. Experts are suggesting that these could last up to 2 years if not less. Investors will be more choosy while putting in their money to a firm, in spite of the fact that unicorns like Physics Wallah, Purplle and Leadsquared have emerged with unique business models and strategies. Due to less capital coming in, it is expected to witness lay-offs from these companies.
