These days in India, a different trend is being seen among the people to start a new business. In other words, there is a wave going on in the country regarding 'entrepreneurship'. That's why India has now become the third largest startup ecosystem in the world, but 2023 has brought a lot of difficulties for this sector.
April 2023 has been the month when Indian startups have got the lowest funding in the last 9 years. Startup companies have had to bear the brunt of the rapidly changing developments on the economic front in the world. Startup companies are facing difficulty in getting funding due to changing preferences of investors.
Funding received for 58 deals
If we look at the figures, Angel Investment and Venture Capitalists have invested $381 million in Indian startups. This investment has come for 58 deals. This is the lowest level of funding in the Indian startup segment since April 2014. At that time only $108 million funding was received for 50 startup deals.
India is the third largest startup hub in the world. More than 90,000 startups are currently working here and there are about 107 unicorns in it. Unicorn means the valuation of these startups has been estimated at more than $ 100 million.
Obstacles in funding
The reasons for startups facing difficulty in getting funding are global. Investors are reluctant to invest in startup funding due to rising interest rates, volatility in the stock markets and continuous decline in the value of share prices of technology companies. Due to this the funding of startup has decreased.
The Russia-Ukraine war had already worsened the global situation. After this, the increase in interest rates by the US Federal Reserve and then the banking crisis in America has had an impact on startup funding.
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