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Tech Start-ups Quarterly Investment Factbook – Q2 CY2023

July 28, 2023 942 0 Product/Startups

Tech Start-ups Quarterly Investment Factbook – Q2 CY2023

The nasscom-Zinnov investment factbook highlights key trends, facts and shifts impacting the tech start-up landscape in India during the quarter. It includes funding statistics by volume, value, stage, and other metrics that provide insights into key verticals, DeepTech, mergers and acquisitions related to the start-up ecosystem during the June end-quarter.

Key Highlights

 

Funding winter continues in the Indian tech start-ups ecosystem

  • Q2 CY2023 funding totaled USD1.31bn — ~4% higher Q-o-Q, 76% lower Y-o-Y
  • No. of deals in Q2 CY2023 lower by 23% Q-o-Q, 58% lower Y-o-Y

 

Some positive signs perceptible

  • Seed-stage funding witnessed  >60% growth Q-o-Q
  • Late-stage funding back on investor’s radar - >50% rise from previous quarter
  • 92% late-stage deals raised by mature tech start-ups compared to 55% in Q1 CY2023

 

Nascent verticals and tech areas creating impact

  • Automotive and Energy & Utilities verticals raised >40% of the total funding
  • SaaS start-ups dominated seed-stage deals, accounting for 30% of the total
  • DeepTech gets back into action with 7% Q-o-Q rise in funding

 

Other Key Trends:

  • Debt vs. equity funding gap that had reduced by 70% in the past year, has now started reversing
  • Growth in revenue and EBIDTA observed across publicly traded start-ups

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