scorecardresearchFunding for start-ups drops by one-fifth in August: Report

Funding for start-ups drops by one-fifth in August: Report

Updated: 06 Sep 2022, 11:53 AM IST
TL;DR.

India is currently experiencing a funding winter, which is expected to continue for the next 12-18 months

August saw nine acquisitions including fintech unicorn Razorpay acquiring Ezetap

August saw nine acquisitions including fintech unicorn Razorpay acquiring Ezetap

The Indian start-up ecosystem witnessed $885 million in funding across 102 funding rounds last month i.e., 20 per cent less funding as compared to July, according to Tracxn’s August 2022 report on the Indian Tech Start-up Space, reported Business Line.

The quarterly funding in the start-up ecosystem peaked in Q3 2021 at $14.8 billion and is on a steady decline since then.

In Q2 2022, Indian start-ups raised a cumulative of $6.84 billion as compared to the $10.3 billion raised in Q1 2022.

Sectors that attracted most funding from investors in August include continued learning, alternative lending, e-commerce enablers, and investment tech.

Edtech unicorn UpGrad announced a large funding round of $210 million in August, as it plans to hire 2,800 full-time and part-time faculty in the next three months.

Pune-based fintech start-up EarlySalary is another company that raised a large round of $110 million in this month. It provides instant loans to young salaried individuals.

Further, August saw nine acquisitions including fintech unicorn Razorpay acquiring Ezetap, a provider of POS solutions for $200 million.

In terms of cities, Bengaluru led in the total funding raised this month, followed by Mumbai and Delhi. Beenext, LetsVenture, Accel and Blume Ventures did the maximum number of deals, making them the top investors in August.

First Published: 06 Sep 2022, 11:53 AM IST