Indian Startup VC Funding Drops 43% in January
- ByStartupStory | February 2, 2024
In January 2024, Indian startups experienced a 43% decline in venture capital (VC) funding, amounting to $646 million, signaling a cautious start to the year. This figure marks a significant drop from the $1.1 billion secured in January the previous year. Despite the decrease, the funding remains substantial considering the ongoing challenges faced by the startup ecosystem.
Comparing on a quarterly basis, VC funding in January saw a 21% reduction from December 2023 when the total amounted to $820 million. The backdrop of 2023, which witnessed a 53% decline in total funding to $10.8 billion compared to 2022, set low expectations for a sharp rebound in January 2024.
January recorded 98 deals, with early-stage funding dominating, reflecting the cautious approach of investors in writing large cheques. Transactions exceeding $20 million were limited to seven, with the highest being $75 million secured by Vivifi Finance.
Despite the overall decline, a positive note emerged with the birth of a new unicorn in the Indian startup landscape. Bhavish Aggarwal’s Krutrim SI Designs, an Artificial Intelligence (AI) startup, achieved a $1 billion valuation in late January. This highlights a growing trend of heightened investor interest in AI startups.
While AI garnered increased attention, the fintech sector led the VC funding charts for January, followed by software-as-a-service (SaaS) and AI.
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