In terms of startup funding, Bengaluru topped the list in 2022 with $10.8 billion. Bengaluru was followed by Mumbai ($3.9 Billion) and Gurugram ($2.6 billion). Startups in Delhi and Chennai recorded $1.2 billion each, said the data by Tracxn, a global market intelligence firm. Pune startups registered $1 billion in funding.
According to the report, compared to the previous year, the fund flow was less in 2022. This shows the impact of funding winter in the startup sector. In 2021, Begaluru-based startups received $20.8 billion in funding while Mumbai-based startups gained $5.2 billion. If there were 46 unicorns in 2021, the number reduced to 22 in 2022. The average funding before the unicorn round was around $160 million.
India began experiencing funding winter in Q4 of 2021. Investments across all industries have been impacted due to rising interest rates and fear of a worldwide recession, the report said. In 2022, no unicorns were made in the months of April, October, and November. The year saw 11 tech IPOs. Some of them were Delhivery, Tracxn, and eMudhra. In the edtech sector, BYJU’S got the highest funding. It gained more than $1.2 billion in 2022. The most active investors of 2022 were LetsVenture, AngelList, and Y Combinator.
