Indian startups are not getting money! Funding done in April less than 9 years

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Indian Startup Funding: There has been a huge drop in funding for Indian startups. The number of funding and deals has reached a nine-year low in April. This will be a big challenge for these companies. Angel investment and venture capital funding in Indian startups stood at $381 million across 58 deals in April.

According to research by VCCircle, this is the lowest funding in nine years. Earlier, the lowest figure was in April 2014, when 50 deals worth $108 million were announced. In April 2022, Indian startups signed 146 deals worth a total of $ 3.3 billion. At the same time, the total amount raised so far in 2023 is not even close to the amount recorded in April 2022 alone.

Good funding happened in March as well

Startup funding transactions worth $1.1 billion took place in March this year. While the revised number for February was 482 million, it was less than half the total value of deals recorded in March 2022. During the year 2021 also there was a big jump in Indian startups funding. Here private equity investors poured billions of dollars into local companies.

Good year 2021 for startups

In India 2021, 100 unicorns or startups with a value of $ 1 billion or more registered a good jump. However, with the improvement in the stock market, the central bank also increased the loan interest, due to which the funding in startups started decreasing and year 2023 In April, this figure reached a 9-year low.

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Why decreased funding

Investors have turned away due to the fear of economic recession worldwide, volatility in the stock market and increase in loan interest. Investors are shying away from investing money in startups. Due to this, there is a huge shortage of money in startups. The effect of this has been that good startups companies are reducing the number of employees.

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