According to new research by Tracxn, the technology-led market intelligence platform, Indian startups raised $3 billion in Q3 2022 (July-September), a 57% decrease from the previous quarter. According to the ‘Tracxn Geo Quarterly Report: India Tech Q3 2022,’ financing in Q3 2022 totaled $3 billion, a 57% decrease from Q2 2022 and an 80% decrease from the peak funding of $14.9 billion in the same quarter previous year.
According to the research, the average ticket size has decreased throughout all financing phases, with the late stage experiencing the largest loss of more than 70%, from $142 million in Q3 of 2021 to $42 million in Q3 of 2022. This indicates that investors are hesitant to make substantial investments until economic circumstances improve. Alternative Lending, Genomics, and Payments were the top three industries that garnered the most financing in this quarter.
According to Neha Singh, Co-Founder of Tracxn, the quarterly startup study reveals that India is now facing a fundraising slowdown that is projected to last for the next 12-18 months, and that the impacts of the funding slowdown are expected to worsen in the future. She went on to add that CEOs throughout the world are preparing for a possible recession and are cutting expenditures and to make matters worse, the recent energy crises in the UK and Europe, as well as the falling GBP and EUR, have raised the prospect of a worldwide recession.
