The winter of funding is upon us for tech-based startups


  • The quarter-end funding for the tech industry peaked in the quarter ending March 2021 with $14.8 billion, and has been steadily on the decrease since then, says Tracxn.
  • August 2022 was a month of $885 million in financing, with 9 acquisitions.
  • Bangalore is the top performer in total amount of money collected and is being followed by Mumbai and Delhi.
    • Beenext, LetsVenture, Accel, Blume Ventures lead VC funding in the month of August India.India is experiencing a financial winter for tech startups, which is expected to last for the next 12-18 years according to a report from Traxcn.
      In the midst of the pandemic quarterly tech startup funding was at its highest in the July-September quarter of 2021 at $14.8 billion. It’s declined steadily since that time, according to the report.

      The next two quarters that followed the average amount of money were raised of around $10 billion. It decreased to $6.48 during the April-June period. In the present quarter, the situation is getting smaller because startups only raised $2 billion in the quarter so far with just one month remaining.

      As of the month August Indian startup companies in the field of technology raised $885 million. Only one-third of the companies that were surveyed by Tracxn received funds. From the 100,000 companies surveyed only 10,000 have received funding from last year.

Read more Talk360, a South African startup, has received $7M in seed funding

  • Tech startups that beat funding freeze
  • Despite the cold winter of funding, the unicorn of edtech UpGrad has been capable of raising $210 million last month , in the midst of raising $225 million earlier in of this year. UpGrad hopes to reach $500 million in gross revenues in FY23. 
  • From the cities that were surveyed, Bangalore led the funding rounds with the largest amount of capital made. Delhi NCR was the top city, Mumbai and Gurgaon came in a close second.
  • In August, the top companies that received funding included edtech firm Upgrad and neo fintech firm EarlySalary as well as the soonicorn device-management company Servify and the genetic tests company MedGenome.
  • The top investors in the Indian technology sector last month included AngelList who made 313 of their investments and LetsVenture with 300 investments. Beenext, LetsVenture, Accel, Blume Ventures are the top venture capitalists in the Indian technology sector.

Read more Hummingbird Ventures leads seed round to raise $5.8M


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