Since last year, the whole world is facing difficult economic conditions. First the disruptions caused by the Corona epidemic (Covid-19) and later the war that started in Eastern Europe (Russia Ukraine War) did not give the economy a chance to recover. Due to this, there is an atmosphere of Global Layoffs all around. If we look at the world of startups, the environment of economic uncertainty has shown the most impact here. Startups looking for opportunities to move forward i.e. new companies are facing problems of necessary capital. In the changed environment, these companies are struggling to raise funds.
So much less funding than a year ago
Quoting market intelligence firm Tracxn, it has been told in a news of an English newspaper that even in the last month, the funding crisis in front of startups continued. During the second month of this year i.e. February 2023, India’s startups were able to raise only $ 809 million in venture funding, which is about 84 percent less than exactly a year ago. A year ago i.e. in February 2022, startups raised $ 5.2 billion.
Driest month of last 01 year
According to data, February 2023 proved to be the driest month for Indian startups in at least a year. This is the first time in the last 12 months that Indian startups have not been able to raise even $1 billion in funding in a single month. During the month of February, these startups raised $809 million in 84 rounds, while a month ago i.e. in January 2023, they raised $1.38 billion in 157 rounds. In this way, there was a 41 percent decline in funding as compared to January.
Fund this startup the most
Insurance Dekho received the highest funding of $150 million during the month of February. It got both debt and equity funding. Funding names included Goldman Sachs Asset Management, TVS Capital Fund, Investcorp, Avatar Ventures and Leapfrog Investments. It was followed by TI Clean Mobility with $145 million in fund raising.
They were also successful in raising funds
Fresh to Home Foods stood third with $104 million. Apart from these, PhonePe with $ 100 million, Pan Health with $ 48 million, CCBP with $ 33 million, Zip Electric with $ 20 million and Simple Energy with $ 20 million were ranked.
