Startup funding in India drops 33% to $24 billion in 2022: report

The startups received total funding of $13.2 billion in 2019, $10.9 billion in 2020 and $35.2 billion in 2021

Funding for Indian startups dropped by 33% to $24 billion in 2022 as compared to the previous year though it was nearly double the amount recorded in 2019 or 2020, said a PwC India report on January 11.

Global investors were still positive about the Indian startup ecosystem despite the global slowdown, as per the report titled 'Startup Tracker-CY 22'.

"Funding for Indian startups in CY22 was nearly $24 billion, a drop of 33% in comparison to CY21 but was still more than twice the funds raised in CY20 and CY19 each", it said.

The startups received total funding of $13.2 billion in 2019, $10.9 billion in 2020 and $35.2 billion in 2021.

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Despite the funding slowdown, Amit Nawka, Partner - Deals & India Startups Leader, PwC India, said, "Some areas like SaaS [Software as a service] and early-stage funding have remained upbeat. With significant dry powder waiting to be invested, it seems likely that the funding scenario will begin to normalise after 2-3 quarters."

Meanwhile, he added, many startups were using the current situation to tighten operating models and optimise cash runway by deferring discretionary spends and investments.