In H1 2022, Indian startups raise $20 billion despite layoffs and shutdowns
- ByStartupStory | July 2, 2022
In terms of funding, Indian entrepreneurs thrived in 2021, and the trend continued into the first quarter of this year. However, the second quarter panned out to be quite a poor financing time due to substantial cheques that were missed regularly over the three months. During the same time, there were huge layoffs, consolidations, and shutdowns as financing potential remained poor.
It’s important to note that Indian startups made $12.67 billion during the first 6 months of 2021, also recognized as H1 2021. They did, however, double in the second half. The present pace of fundraising is comparable to the preceding year’s funding of $38 billion.
India is an emerging global market for venture capital financing, ranking among the top five. The increase in VC financing came at a time when most significant worldwide markets, including the United States, China, and the United Kingdom, saw a decrease in VC funding growth in April compared to last month.
While VC funding is increasing, numerous Indian firms have announced large-scale layoffs to reduce expenses in the face of uncertainties about potential business prospects due to sluggish economic development. Unacademy, an ed-tech firm, laid off 600 people in March and April, including on-roll staff, contractual workers, and instructors. Furlenco, a furniture firm, and Meesho, an e-commerce platform, have both laid off employees in recent days.
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