Indian Startup funding declined 40% between April and June: PwC report
- ByStartupStory | July 11, 2022
According to a PwC India report, geopolitical uncertainty appears to be weighing on Indian startups, with total funding dropping by 40% to $ 6.8 billion in the April-June period. According to the PwC India report titled, ‘Startup Deals Tracker – Q2 CY22,’ early-stage deals accounted for more than 60% of the total, with an average ticket size of USD 5 million. “After three consecutive quarters of bringing up more than USD 10 billion, total funding mostly in Indian startup ecosystem fell by 40% during Q2 CY22 to reach USD 6.8 billion.”
According to the research, software as a service (SaaS) & fintech firms received the most funding in the second quarter of the 2017 year (CY) 2022, totaling more than USD 3.1 billion. It went on to say that early-stage agreements accounted for more than 60% of overall deal volumes, with an average transaction size of USD 5 million. Funding in early-stage deals remained stable at around USD 800 million in Q2 CY22 and could remain stable or even grow in the coming quarters, given that entrepreneurial activity persisted to flourish with steadily increasing digitization and the quantum of VC funds waiting to be deployed within the Indian market, it added.
According to the research, Bengaluru, the National Capital Region (NCR), and Mumbai continue to be the primary startup locations in India, accounting for almost 95% of total investment activity in the April-June quarters of 2022, followed by Chennai & Pune.
In Bengaluru, seven companies each raised more than USD 100 million in the second quarter of 2022 primarily in the SaaS, logi, and auto tech areas.
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