According to industry body Nasscom, funding for start-ups decreased by 17% from quarter to quarter, totalling $6 billion from April to June.
According to the industry body Nasscom, the amount of money invested in new businesses over the period of April to June decreased by 17% on a quarterly basis to a total of $6 billion (about 47,800 crores). According to the Nasscom quarterly investment factbook on tech start-ups, which was developed in partnership with PGA Labs, contracts also declined by roughly 17 per cent owing to subdued market sentiments. Nevertheless, financing in the growth stage continued to expand despite the fall in deal value.
According to the study, “In the second quarter (Q2) of the calendar year (CY) 2022, total financing of $6 billion was generated thanks to the participation of sixteen high ticket size projects. The start-up ecosystem was witness to the birth of four new unicorns during the second quarter of CY22, bringing the total number of unicorns to 20 during the first half of the year.”
The fintech industry received around 26 percent of the total capital that was available. According to the report, “Large ticket deals like CRED and Dailyhunt resulted in an overall increase in total investments in fintech and media and entertainment sectors, contributing around 45 per cent of total funding in Q2 of CY22.” [CRED] and [Dailyhunt] are examples of large deals that contributed to the overall increase in total investments.
According to the research, growth stage agreements accounted for 58% of the total investment during the reporting quarter. This is because investor-backed start-ups have already achieved a certain level of size. As shown in research by Tracxn, Indian start-ups raised a total of $6.9 billion during the second quarter of the year 2022. This is a sequential decline of 33 percent from the previous quarter.
Read more: Startup funding dropped 17% in April-June quarter: Nasscom
