- Indian startups raised $5.46 billion in the first half of 2023, a 68% decline from the same period in 2022, marking a significant contraction due to major backers reducing new investments.
- There were no fresh Indian unicorns in 2023, contrasting to the 18 and 16 new entrants in 2022 and 2021 respectively. The funding squeeze affected startups of various stages, from seed funding to early and late-stage funding rounds.
- Despite contraction, there is potential for resurgence from considerable ‘dry powder’— untapped capital reserves held by venture capital firms like Peak XV Partners, Lightspeed, and Accel—which could lead to more investments in the coming months.
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