Data and analytics company GlobalData said on Thursday that despite the funding winter, 128 Indian startups have raised over USD 995 million (around Rs 8,000 crore) venture capital funding in August.
Performing better than US, UK
This is 9.7 per cent more than the previous month.
Aurojyoti Bose, Lead Analyst at GlobalData, said that although the funding amount remains below USD 1 billion August managed to reverse the decline in fundraising.
The growth has come at a time when fundraising in other key global markets such as the US and UK witnessed decline.
“China and India were the two notable exceptions to this trend,” Bose said.
1,239 deals in 7 months
An analysis of GlobalData’s Financial Deals Database revealed that India saw the announcement of 1,239 VC funding deals during January to August 2022.
The disclosed funding value in the year-ago period stood at USD 17.7 billion.
Bose said despite the economic volatility, Indian startups managed to gain investors’ confidence.
“As the cyclical phenomenon of the funding winter suggests, India witnessed a slight month-on-month improvement in VC fundraising in August”, he noted.
Top sectors, cities receiving funding
Market intelligence platform Tracxn says continued learning, alternative lending, e-commerce enablers, and investment tech are the top sectors that received the most funding from investors in August 2022.
Of all big cities, Bengaluru tops the chart with the maximum fundraising, followed by Mumbai and Delhi.
Notable fundraisings in August were by UpGrad ($210 million), EarlySalary ($110 million), and Razorpay’s acquisition of Ezetap ($200 million). Investors like Beenext, LetsVenture, Accel, and Blume Ventures topped the investment charts last month.
The government data shows the number of recognised startups in the country increased from 471 in 2016 to 72,993 in 2022, a massive 15,400% rise.
However, of late such startups are facing rough days amid global supply chain disruptions, causing a fund crunch as Indian startups rely heavily on external funding.