Inc42's Annual Funding Report 2023

INDIAN TECH
STARTUP
FUNDING
REPORT I
F U N D I N G W
FUNDING WI D OW NS *
NTER * M&As R S A
* R
M K
* UNICORNS P I N V E STO
O R *
N T
S *
O T
POI N V E
& A s * U N I C S TO R S * E M E
I POS * M RG I N G H U BS
AG E T EC H * N E W AGE TEC
NEW
01 Indian Startup Funding: 2023 In Review 10 Startup Funding: Investor Participation Trends
Table Of Contents 01 The Rise Of India's Digital Economy Investor Landscape
02 The State If Indian Startup Economy YoY Trends

Stage Wise Trends
03 Indian Startup Landscape
Celebrity Investors Of 2023
04 India Vs US Vs China: A Comparison Investor Ranking: Top Funds
05 Indian Startup Launches Startup Fund Launches Of 2023
06 Indian Startup Funding Trends 11 The State Of Unicorns & Soonicorns

Year-On-Year Funding Trends Unicorn Landscape
Mega Deal Trends The Rise Of Unicorn Club
Average Ticket Size Trends Unicorn Race: India Vs Others
Sector-Wise Analysis & Trends Soonicorn Landscape
Stage-Wise Analysis & Trends Future Unicorns
Geographic Trends
12 The State Of New Age Tech IPOs
07 Gender Diversity: The State Of Startup Funding
The 2023 IPOs
Key Highlights
Public Markets Performance Of New Age Techs
YoY Funding Trends
Anticipated New Age Tech IPOs In 2024
Top Sectors
13 The Pulse Of Tech: Inc42’s Annual Investor & Founders Survey
08 Valuation Markdowns
14 Trends & Predictions For 2024
09 The State Of Startup M&As
Year-On-Year M&A Trends
Sectoral Analysis & Trends
Top 10 Biggest M&A Transactions
© INC42 MEDIA | NOT FOR DISTRIBUTION / 3
Indian Startup Funding: 2023 In Review

$10 Bn+ Bengaluru Enterprise Tech
Total Funding Raised Hub With Most Funding and M&A deals Sector With Most M&As
897+ Ecommerce 1.5K+

Funding Deals Sector With Most Deals Investors Participated In Startup Funding
23 2 $2.2 Mn
Unicorn Minted Median Ticket Size
Mega Deals
5 123+
New Age Tech Startups Listed M&A Deals
Note: 2023 data is for the period between January 1 and December 25
Source: Inc42
India To Have 900 Mn+ Active Internet Users By 2025

By 2025, 56% of all new internet users will be from rural areas, and 65% of new internet users will be female
% Growth
2022 2025 (E) (Absolute)
Smartphone Internet Penetration 5G Enabled Indian

931 Mn+ 1.1 Bn+ 22% (Active Users) Cities/towns
users
52% 7K+
Internet
users
759 Mn+ 900 Mn+ 19%
Urban Internet Penetration Number Of Male
(Active Users) Internet Users
71% 395 Mn
Urban internet
users 360 Mn+ 396 Mn+ 10%
Cost Of 1GB Number Of Female

Internet Internet Users
Rural internet
users 399 Mn+ 504 Mn+ 26% $0.16 349 Mn
SOURCE: IAMAI, INC42 ANALYSIS

The State Of Indian Startup Economy
3rd Largest Ecosystem In The World 768K+ Jobs Created In The Past Six Years
68K+ Indian Startups Launched To Date $146 Bn+ Funding Raised By Indian Startups
112 Indian Startups In The Unicorn Club 5.6K+ Funded Startups In India
9.7K+ Investors Participated In Startup Funding $350 Bn+ Combined Valuation Of Indian Unicorns
1.3K+ M&A Deals Recorded 25 Listed Indian Internet Companies
Note: Funding & M&A data is for the period between January 1, 2014 and December 25, 2023
Source: Inc42
Indian Startup Landscape
SOONICORNS
UNICORNS
Note: This is not a exhaustive list
Global Startup Ecosystem Comparison: India vs The USA vs China
India China USA
Total Funding (2014 to 2023) $146 Bn+ $793 Bn+ $2.7 Tn+
Funding CAGR (2014 to 2023) 7% 35% 38%
No. Of Unicorns 112 172+ 650+
Total Internet Users 759 Mn+ 1.1 Bn+ 311 Mn+
Internet Penetration* 64% 76% 92%
Source: Inc42, CB Insights, Crunchbase, Global Times

Note: *The internet penetration for India mentioned here is based on total number of subscribers rather than active users
1.8L Tech Startups In India By 2030

The total number of tech startups in India will grow 2.6x from 68K (2023) to 1.8L (2030)
2.0
+2.6x
Cumulative Number Of Startups Launched (In Lakhs)
$146 Bn+
Total Funding Raised Since
1.5 2014
112
Unicorns In India
1.0
1.3K+
Exits Through M&As
0.5
9.7K+
Active Startup Investors
0.0
2023 2025 2030
Source: Inc42
Funding Trends
[2014 to 2023]
Year-On-Year Funding Trends Average Ticket Size Trends Stage-Wise Analysis & Trends
Mega Deal Trends Sector-Wise Analysis & Trends Geographic Trends
Indian Startup Economy: The State Of Funding & Exits

2023 2022 2021 2020
Total Funding $10 Bn+ $25 Bn+ $42 Bn+ $12 Bn+
Deal Count 897+ 1.9K+ 1.6K+ 953+
Median Ticket Size $2.2 Mn+ $3.5 Mn+ $3.5 Mn+ $2.8 Mn+
Total Unique Investors 1.5K+ 2.4K+ 2.4K+ 1.1K+
Unicorns Minted 2 22 45 12
Number Of M&As 123+ 240+ 210+ 82+
No. Of New Age Tech IPOs 5 3 11 0
Note: 2023 data is as of December 25

Source: Inc42
$146 Bn+ Raised By Indian Startups Since 2014
150 10,000
7,500
100
Funding Amount ($ Bn)
Deal Count
5,000
50
2,500
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Funding Amount ($ Bn) Deal Count

Source: Inc42
Note: 2023 funding data is for the period between January 1 and December 25
Indian Startup Funding Takes A Hit: $10 Bn Raised In 2023, A 60% YoY Decline
50 2,000
40
1,500
30
Deal Count
1,000
20
500
10
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Funding Amount Deal Count

Source: Inc42
At $2.2 Mn, Indian Startup Funding Median Ticket Size Lowest Since 2019
4.0
Median Ticket Size Of Funding ($ Mn)
3.0
2.0
1.0
0.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Mega Deal Count Hits Six-Year Low In 2023

125
100
Mega Deal Count ($100 Mn or above)
75
50
25
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Top 10 Biggest Funding Rounds Of 2023

Sector Funding Stage Round Size Notable Investors
Fintech Late Stage $850 Mn* General Atlantic, Walmart, Tiger Global
Ecommerce Late Stage $600 Mn* Abu Dhabi Investment Authority
Ecommerce Late Stage $600 Mn Walmart
Fintech Late Stage $400 Mn Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Financial Group
Cleantech Late Stage $384 Mn Temasek Holdings, SBI
Ecommerce Late Stage $340 Mn Lightspeed Venture Partners, DST Global
Enterprisetech Late Stage $250 Mn ICONIQ Capital, Jungle Ventures,Insight Partners, QIA
Consumer Services Late Stage $231 Mn* Nexus Venture Partners, Glade Brook Capital Partners, Lachy Groom, StepStone
Fintech Late Stage $229 Mn Kedaara Capital
Fintech Growth Stage $210 Mn* Investcorp, Avataar Venture Partners, LeapFrog Investments, TVS Capital Funds
Source: Inc42
Note: 2023 funding data is for the period between January 1 and December 25 | *Raised in multiple tranches
10 Most Funded Sectors Of 2023
Fintech
Ecommerce
Ecommerce
Enterprisetech
Enterprisetech
Fintech
Deeptech Cleantech
Top 10 Sectors (2023)

Top 10 Sectors (2023)
Healthtech Deeptech
Consumer
Cleantech Services
Edtech Logistics
Media & Media &

Entertainment Entertainment
Consumer
Edtech
Services
Logistics Healthtech
0 50 100 150 200 0.00 1.00 2.00 3.00 4.00
Deal Count Funding Amount ($ Bn)

Source: Inc42
Indian Startup Funding: Sector Overview

2023 2022 2021
Funding Amount Deal Count Funding Amount Deal Count Funding Amount Deal Count
Fintech $3 Bn+ 129+ $4.8 Bn+ 262+ $8 Bn+ 290+
Ecommerce $2.6 Bn+ 192+ $3.8 Bn+ 300+ $11 Bn+ 288+
Enterprisetech $1.3 Bn+ 157+ $4 Bn+ 292+ $3.7 Bn+ 248+
Cleantech $861 Mn+ 57+ $1.1 Bn+ 81+ $567 Mn+ 58+
Deeptech $496 Mn+ 61+ $397 Mn+ 52+ $242 Mn+ 52+
Consumer Services $385 Mn+ 39+ $1.5 Bn+ 54+ $3 Bn+ 68+
Logistics $368 Mn+ 32+ $918 Mn+ 36+ $1.5 Bn+ 54+
Media & Entertainment $285 Mn+ 44+ $2.2 Bn+ 87+ $3.6 Bn+ 106+
Edtech $283 Mn+ 47+ $2.4 Bn+ 95+ $4.8 Bn+ 172+
Healthtech $233 Mn+ 57+ $1.4 Bn+ 119+ $2.1 Bn+ 125+
Travel Tech $209 Mn+ 25+ $374 Mn+ 33+ $2,2 Bn+ 45+
Agritech $208 Mn+ 28+ $817 Mn+ 60+ $724 Mn+ 48+
Source: Inc42
Fintech Startup Investments In 2023 Lending Tech Remain Investor Favourite

Indian Fintech Startup Funding Witnessed A 37% Drop
Others
3.2% 1,185
8.0 300 96
Investment Tech 107
3.6% Lending Tech

6.0
39.2%
200 314 Funding
Deal Count
Insurtech
4.0 10.4% Amount
348
($ Mn)
100
2.0 Fintech SaaS
Banking
11.5%
32.1%
971
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Insurtech
Funding Amount Deal Count 8.5%
11
Banking
8.5% 11 Lending Tech
Funding Raised Since 2014 $28 Bn+ 44 34.1%
Payments
14
Funded Startups Since 2014 726+ 10.9% 129
Deals
Mega Deals In 2023 12
Investment Tech 19
14.7%
M&As In 2023 21
30
FIntech SaaS
23.3%
Top Funded Startup Of 2023 PhonePe
Source: Inc42
Fintech Startup Funding Deals Cut To Nearly Half Across Stages

125
100
Deal Count
75
50
25
0
2014 2016 2018 2020 2022
Late Stage Growth Stage Seed Stage
2023 2022 % YoY Change 2023 2022 % YoY Change

Seed Stage $176 Mn+ $384 Mn+ -54% 61+ 114+ -46%
Growth Stage $1.1 Bn+ $1.6 Bn+ -33% 30+ 68+ -56%
Late Stage $1.7 Bn+ $2.6 Bn+ -36% 24+ 49+ -51%
Source: Inc42
Fintech Funding: Seed Stage Median Ticket Size Worst Hit In 2023
50.0 2.0
Median Ticket Size ($ Mn): Growth & Late Stage
Seed Stage
40.0
-30%
Median Ticket Size ($ Mn): Seed Stage

1.5
YoY % Change
30.0
1.0
Growth Stage
20.0 -17%
YoY % Change
0.5
10.0 Late Stage
-10%
0.0 0.0 YoY % Change
2019 2020 2021 2022 2023
Seed Stage (RHS) Growth Stage Late Stage

Source: Inc42
Ecommerce Startup Investments In 2023 D2C Brands Dominated Ecommerce Funding in 2023
Indian Ecommerce Startup Funding Witnessed A 32% Drop
Others
12.0 300 3.5%
91
10.0 B2C Ecommerce

25.9% 682
8.0 200
Funding
Deal Count
6.0 Amount 1,415 D2C
4.0 100 ($ Mn) 53.7%
2.0
B2B Ecommerce
448
0.0 0 17.0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Others
Funding Raised Since 2014 $34 Bn+ 4.2% 8
B2C Ecommerce
Funded Startups Since 2014 886+ 12.5% 24
192
Deals 135
B2B Ecommerce 25 D2C

M&As In 2023 25 13.0% 70.3%
Top Funded Startup Of 2023 Lenskart
Source: Inc42
Seed & Growth Stage Ecommerce Funding Worst Impacted In 2023
150
100
Deal Count
50
0
2014 2016 2018 2020 2022

Seed Stage $89 Mn+ $252 Mn -65% 107 142 -25%
Growth Stage $543 Mn+ $949 Mn -43% 39 71 -45%
Late Stage $1.9 Bn+ $2.5 Bn+ -24% 16 41 -63%
Source: Inc42
Ecommerce Funding: Seed Stage Median Ticket Size Worst Hit In 2023
80 1.0
Seed Stage
-67%
Median Ticket Size ($ Mn): Growth & Late

60 0.8
YoY % Change
40 0.5
Growth Stage
No change
YoY % Change
20 0.3
Late Stage
-63%
0 0.0 YoY % Change
2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Inc42
Enterprise Tech Startup Investments In 2023

Indian Enterprise Tech Startup Funding Witnessed
A 68% Drop Funding Raised Since 2014 $15 Bn+
5.0 300
Funded Startups Since 2014 1.1K+

4.0
200
3.0
Deal Count
2.0
100
M&As In 2023 33
1.0
0.0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Top Funded Startup Of 2023 Builder.ai
Source: Inc42
Late Stage Startups Worst Impacted In Indian Enterprise Tech Sector In 2023
200
150
Deal Count
100
50
0
2014 2016 2018 2020 2022

Seed Stage $143 Mn+ $824 Mn+ -83% 94 169 -44%
Growth Stage $489 Mn+ $1.1 Bn+ -55% 34 66 -48%
Late Stage $602 Mn+ $2 Bn+ -71% 11 22 -50%
Source: Inc42
Median Ticket Size For Late Stage Indian Enterprise Tech Startup
Deals Plummets
100 1.5
Seed Stage
-43%

75
YoY % Change
1.0
Growth Stage
50
-37%
YoY % Change
0.5
25
Late Stage
-61%
0 0.0
YoY % Change
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Edtech Startup Investments In 2023 Skill Development Gains Investor Momentum In 2023
Indian Edtech Startup Funding Witnessed A 88% Drop
Others
1.6% 5
5,000 200 Skill Development
43
Edtech SaaS 72 25.3%
4,000 15.3%
Funding Amount ($ Mn)
150
Online Certification
Funding
3,000 45
Amount
Deal Count
15.9%
100
($ Mn)
2,000
64 Test Preparation
50
1,000 55 22.6%
Online Discovery
19.2%
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Others
Funding Amount ($ Mn) Deal Count 17.0%
8
Skill Development
17 36.2%
Online Certification
Funding Raised Since 2014 $11 Bn+ 5
10.6%
47
Deals
Funded Startups Since 2014 430+
Online Discovery 5
10.6%
M&As In 2023 13
6 6
Edtech SaaS Test Preparation
12.8% 12.8%
Top Funded Startup Of 2023 Xylem Learning
Source: Inc42
Post-Covid Aftermath — Edtech Funding Worst Impacted Across Stages
100
75
Deal Count
50
25
0
2016 2018 2020 2022

Seed Stage $40 Mn+ $53 Mn+ -25% 24 48 -50%
Growth Stage $123 Mn+ $784 Mn+ -84% 9 19 -53%
Late Stage $96 Mn+ $1.5 Bn+ -94% 3 11 -73%
Source: Inc42
Worst Hit: Median Ticket Size Shrinks For Edtech Growth Stage Investments
100.0 1.0
Seed Stage
No Change

75.0 0.8
YoY % Change
Growth Stage
50.0 0.5
-81%
YoY % Change
25.0 0.3
Late Stage
2.6 -36%
2015 2016 2017 2018 2019 2020 2021 2022 2023
Seed Stage Growth Stage Late Stage

Source: Inc42
Consumer Services Startup Hyperlocal Services Bagged More Deals Than Delivery
Investments In 2023
Hyperlocal Services
Indian Consumer Services Startup Funding Witnessed A 75% Drop
12.5% 48
3.00 150
Funding
2.00 100
Deal Count
Amount
($ Mn)
1.00 50
337
Hyperlocal Delivery
0.00 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 87.5%
Funding Raised Since 2014 $11 Bn+
Hyperlocal Delivery
Funded Startups Since 2014 369+ 17
43.6%
39
Deals 22
Hyperlocal Services
56.4%
M&As In 2023 3
Top Funded Startup Of 2023 Zepto
Source: Inc42
Late-Stage Funding Takes A Toll On Consumer Services Startups In India In 2023
100
75
Deal Count
50
25
0
2014 2016 2018 2020 2022

Seed Stage $13 Mn+ $34 Mn+ -63% 20 26 -23%
Growth Stage $49 Mn+ $26 Mn+ +92% 6 8 -25%
Late Stage $311 Mn+ $1.4 Bn+ -78% 5 10 -50%
Source: Inc42
Median Ticket Size For Growth Stage Consumer Services Startups Show
Recovery, But Late Stage Cut To Half In 2023
150 1.00
Seed Stage
-18%

0.75 YoY % Change
100
Growth Stage
0.50
34%
YoY % Change
50
0.25
Late Stage
-56%
0 0.00 YoY % Change
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Media & Entertainment Startup Despite Regulatory Hurdles, Gaming Startups

Captured Major Chunk In Funding
Investments In 2023
Social Media & Chat
Indian Media & Entertainment Startup Funding Witnessed A 87% Drop
10.5%
30
4.0 125
OTT
16.1% 46
Funding
100
3.0
Amount
($ Mn)
Deal Count
75
2.0
209 Gaming
50
73.3%
1.0
25
OTT
0.0 0 11.4%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
5
Funding Raised Since 2014 $9.5 Bn+

44 22
Gaming
50.0%
Deals
Funded Startups Since 2014 419+ Social Media & Chat 17
38.6%
M&As In 2023 7
Top Funded Startup Of 2023 Nazara Technologies
Source: Inc42
Media & Entertainment Startups Witness Funding Decline Across Stages
80
60
Deal Count
40
20
2
0
2014 2016 2018 2020 2022

Seed Stage $46 Mn+ $99 Mn+ -54% 27 43 -37%
Growth Stage $126 Mn+ $696 Mn+ -82% 10 24 -58%
Late Stage $77 Mn+ $1.4 Bn+ -95% 2 8 -75%
Source: Inc42
71% Decline In Median Funding Amount For Late Stage Funding In

Media & Entertainment Sector
150 1.3
Seed Stage
-31%

1.0
YoY % Change
100
0.8
Growth Stage
0.5
-13%
YoY % Change
50
0.3 Late Stage
-71%
0 0.0 YoY % Change
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Source: Inc42
Deeptech Startup Investments In 2023 Startups Across Deeptech Segment Bag Big Bucks
Indian Deeptech Startup Funding Jumps 9% In 2023

Others 147
500 60 2.0% Robotics Process
9
Automation (RPA)
Dronetech
6.8% 29 34.1%
400
Funding
40
Amount
Deal Count
300
Hardware & IoT ($ Mn)
28.4% 123
200 124
20 Spacetech
28.7%
100
0 0 Others
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
7.3% 4
Robotics Process Automation (RPA)
Funding Amount ($ Mn) Deal Count 4
7.3%
AR/VR
9.1% 5 Hardware & IoT
23
41.8%
Funding Raised Since 2014 $1.5 Bn+
55
Deals
Funded Startups Since 2014 243+ Dronetech 8
14.5%
M&As In 2023 1
Spacetech 11
20.0%
Top Funded Startup Of 2023 GreyOrange
Source: Inc42
Deeptech Startup Growth Stage Deals On The Rise, Seed Stage Retreating
50
40
Deal Count
30
20
10
0
2014 2016 2018 2020 2022
Seed Stage Growth Stage

Seed Stage $27 Mn+ $44 Mn+ -38% 22 31 -29%
Growth Stage $209 Mn+ $203 Mn+ 3% 16 9 78%
Late Stage $145 Mn+ $110 Mn+ 32% 3 2 50%
Source: Inc42
Median Ticket Size Shrinks For Seed & Growth Stage In

Deeptech Startups
25.0 1.3
Seed Stage
-40%
Median Ticket Size ($ Mn): Growth Stage

20.0 1.0
YoY % Change
15.0 0.8
Growth Stage
-54%
10.0 0.5
YoY % Change
5.0 0.3 Late Stage
N/A
2016 2018 2020 2022
Seed Stage (RHS) Growth Stage

Source: Inc42
Early Stage Funding Takes The Biggest Hit In 2023

Funding Stage Funding Amount YoY Change Deal Count YoY Change
Seed Stage $681 Mn+ -72% 467+ -37%
Growth Stage $2.9 Bn+ -60% 192+ -46%
Late Stage $5.6 Bn+ -60% 83+ -57%
Source: Inc42
Seed Stage Funding In 2023: An Overview Enterprise Tech & Ecommerce Record Max
Seed Stage Funding In 2023
Seed Stage Funding Reports 72% YoY Decline In 2023
2,500 800 Others Enterprise Tech

22.8% 21.1%
155 143
2,000
600
Funding
1,500 Media & Entertainment Amount
Deal Count
46
6.7%
400 ($ Mn)
139 Fintech
1,000 Deeptech 51
20.5%
7.5%
200 57
500 Cleantech
89 Ecommerce
8.4%
13.1%
0 0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Others
15.0% Ecommerce
Funding Amount ($ Mn) Deal Count 70
22.9%
107
Deeptech
5.1% 24
Funding Raised Since 2014 $6 Bn+ Edtech

24
5.1% 467
4K+
Media & Entertainment 27 Deals
Funded Startups Since 2014 5.8%
29 94 Enterprise Tech
Healthtech
20.1%
Median Ticket Size In 2023 $823K 6.2%
32
Cleantech
6.9% 60 Fintech
Active Investors In 2023 905+ 12.8%
Source: Inc42
31% Decline In Median Ticket Size For Seed Stage Investments In Indian Startups
1.3
1.0
0.8
0.5
0.3
0.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Growth Stage Funding In 2023: An Overview Fintech & Ecommerce Emerge As The Most Funded
Indian Startups Witness A 60% Correction In Sectors At Growth Stage In 2023
Growth Stage Funding
Others
10.0 400 20.0% Fintech
587 24.5%
721
8.0
300 Cleantech Funding
6.5% 190
6.0
Amount
Deal Count
200 Logistics 200 ($ Mn)
6.8%
543 Ecommerce
4.0
209
Deeptech 18.5%
7.1%
100
2.0 Enterprise Tech 489
16.6%
0.0 0 Others
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Ecommerce
16.7% 32
39 20.3%
Cleantech
5.2% 10
Funding Raised Since 2014 $35 Bn+ Healthtech
10 192
5.2%
Logistics
Deals Enterprise Tech
Funded Startups Since 2014 1.5K+ 10 34
5.2% 17.7%
Media & Entertainment 10
Median Ticket Size In 2023 $10 Mn 5.2%
17
Deeptech 30
Fintech
8.9%
Source: Inc42
20% Decrease In Median Ticket Size For Growth Stage Investments In Indian
Startups
15.0
Median Ticket Size ($ Mn): Growth Stage
10.0
5.0
0.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Late Stage Funding In 2023: An Overview Fintech & Ecommerce Emerge As The Most Funded
Indian Startup Ecosystem Report 60% YoY Drop In Sectors At Late Stage In 2023
Late Stage Funding In 2023
Others
9.9%
Deeptech 0.6
40.0 250
2.6% 0.1
Consumer Services 0.3 Fintech
200 5.5% 2.1 37.3%
30.0
Funding
0.6
Cleantech
150 10.1% Amount
Deal Count
20.0
($ Mn)
Enterprise Tech 0.6
100
10.7%
10.0
50 1.3 Ecommerce
23.8%
0.0 0 Others
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
18.1%
15
Funding Amount ($ Bn) Deal Count Fintech
25 30.1%
Healthtech
3.6% 3
Funding Raised Since 2014 $102 Bn+ Logistics
3.6%
3 83
Consumer Services Deal Count
Funded Startups Since 2014 426+ 5
6.0%
Cleantech 6
Median Ticket Size In 2023 $30 Mn 7.2% 15
Ecommerce
11 18.1%
Enterprise Tech
Source: Inc42
Indian Startup Late Stage Investments Experience 35% Drop In Median

Ticket Size
60
Median Ticket Size ($ Mn): Late Stage
40
20
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Top 10 Funded Hubs In 2023
Bengaluru Bengaluru
Delhi NCR Delhi NCR
2023's Most Funded Indian Startup Hubs

2023's Most Funded Indian Startup Hubs
Mumbai Mumbai
Chennai Chennai
Pune Pune
Hyderabad Hyderabad
Ahmedabad Ahmedabad
Kolkata Kolkata
Jaipur Jaipur
Surat Surat
0 50 100 150 200 250 0 1,000 2,000 3,000 4,000
Deal Count Funding Amount ($ Mn)

Source: Inc42
2023 Downturn: India's Leading Startup Hubs Experience Sharp Funding Decline
25.0
Funding In 2023
Bengaluru
20.0
$4.2 Bn
-61% YoY Change
15.0
Delhi NCR
10.0
$2.7 Bn
-51% YoY Change
5.0
Mumbai
0.0
$1.5 Bn
2014 2016 2018 2020 2022 -62% YoY Change
Bengaluru Delhi NCR Mumbai
Source: Inc42
Mumbai & Bengaluru's Startup Funding Deal Activity Most Impacted In 2023
600
Deal Count In 2023
Bengaluru
249
400 -48% YoY Change
Deal Count
Delhi NCR
241
200
-39% YoY Change
Mumbai
0
160
2014 2016 2018 2020 2022 -36% YoY Change
Bengaluru Delhi NCR Mumbai
Source: Inc42
How Did Emerging Indian Startup Hubs Performed In 2023?

80
Ahmedabad
-15%
YoY Change (Deal Count)
60
Pune
-41%
Deal Count
40 Chennai
-48%
20 Hyderabad
-54%
Jaipur
0
2014 2016 2018 2020 2022 -56%
Pune Chennai Hyderabad Ahmedabad Jaipur
Source: Inc42
How Emerging Hubs Stack Up Against Each Other

Rank Startup Hub Funding Amount Deal Count Notable Investors
1 Pune $4.7 Bn 355 SoftBank, InnoVen Capital, Elevation Capital, Accel
2 Chennai $3.7 Bn 346 Peak XV, Accel, Chiratae Ventures, Iron Pillar
3 Hyderabad $2.7 Bn 336 Hyderabad Angels, 3one4 Capital, T-Hub, Peak XV
4 Ahmedabad $839 Mn 141 Alteria Capital, Lightspeed Venture Partners, Alkeon Capital, Ah Ventures
5 Jaipur $1.2 Bn 92 CapitalG, Indian Angel Network, Peak XV, Rajasthan Venture Capital Fund
6 Kolkata $178 Mn 83 Anicut Capital, Tiger Global Management, Accel, Indian Angel Network
7 Indore $87 Mn 37 Info Edge, Sixth Sense Ventures, Venture Catalyst, Better Capital
8 Kochi $26 Mn 32 KSUM, Prime Venture Partners, IAN, Ah Ventures
9 Chandigarh (Tricity) $225 Mn 36 Kalaari Capital, Chandigarh Angels Network, Anicut Capital, Paytm
10 Vadodara $85 Mn 19 DSG Consumer Partners, Mumbai Angels, IAN, Venture Catalyst
Source: Inc42
Note: Based on funding deals reported between 2014 and December 25, 2023 | Placed in order of number of deals | Tricity includes (Chandigarh + Mohali + Panchkula)
The State Of
Startup Funding
Key Highlights YOY Funding Trends Top Sectors
Gender Diversity: The State Of Startup Funding In 2023
$475 Mn+ 109 $56 Mn+

Total Funding Raised By Women Unique Women Led Startups Raised In
Led Startups In 2023 Funded In 2023 Seed Stage
$198 Mn+ $189 Mn+ 5%

Raised In Raised In Share Of Women-Led Startups In Overall Funding In
Growth Stage Late Stage 2023, Lower Than 9.6% In The Previous Yea
Delhi NCR Ecommerce & Enteprise Tech

Hub With The Most Women Led Reported Most Funding In
Startups Funded In 2023 Women-Led Ventures
Source: Inc42
2023 Sees A Dramatic 80% Drop In Funding For Women-Led Indian Startups
5 300
200
Deal Count
2
100
0 0
2021 2022 2023
Source: Inc42
Women-Led Startups — Ecommerce And Enterprise Tech Sectors Emerged As

Most Funded In 2023
Others
Others 7.5%
Cleantech 35
22.9%
27 4.0% 19
Logistics
Ecommerce Enterprisetech
5.4% 25
42 35.6% 33.0%
Travel Tech
157
6.1% 29
Fintech
118 $475 Mn
6
5.1% Deal Count Funding
Edtech
44
Healthtech
5.1%
6 9.2% Amount
Consumer Services 7
5.9% 52
18 Fintech
12
Enterprisetech 11.0%
Edtech 114
10.2% 15.3% Ecommerce
23.9%
Source: Inc42
Valuation Adjustments: Indian Unicorns Face Valuation Markdown Headwinds

Current Investor Who Slashed
Markdown Percentage Valuation Post Markdown
Valuation The Valuation
$22 Bn 50% $11 Bn
$22 Bn 62.00% $8.3 Bn
$22 Bn 72.80% $5.98 Bn
$22 Bn 76.80% $5.1 Bn
$10.7 Bn 25% $8 Bn
$10.7 Bn 48.50% $5.5 Bn
$10.7 Bn 32% $7.3 Bn
$10.7 Bn 39.25% $6.5 Bn
$5.6 Bn 21.40% $4.4 Bn
$5.6 Bn 50% $2.8 Bn
$5.6 Bn 52% $2.7 Bn
Source: Reports, Investor Filings

Current Investor Who Slashed

Markdown Percentage Valuation Post Markdown
Valuation The Valuation
$5 Bn 38% $3.1 Bn
$7.4 Bn 35% $4.8 Bn
$3.2 Bn 8.56% $2.9 Bn
$4.9 Bn 9.70% $4.4 Bn
$9.6 Bn 71.8% $2.7 Bn
$1.4 Bn 31.60% $957.6 Mn
Source: Reports, Investor Filings

Startup M&As
Year-On-Year M&A Trends Sectoral Analysis & Trends Top 10 Biggest M&A Transactions
Indian Startup M&As Cut To Half In 2023 Compared To 2022

250
200
150
M&A Deal Count
100
50
0
2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Nearly One-Third Of The Indian Startup M&As Were In Enterprise Tech

Sector In 2023
Others
8.1%
Logistics 10
4.9%
Enterprisetech
6 26.8%
Media and Entertainment
5.7%
33
7
Healthtech
6.5% 8
M&A
Deal Count
Edtech 13
10.6%
25
Ecommerce
20.3%
21
Fintech
17.1%
Source: Inc42
Top 10 Startup Acquisitions Of 2023

Acquired Startup Sector Founding Year HQ Acquired By Transaction Amount
Ecommerce 2018 Delhi NCR $67 Mn
Ecommerce 2020 Mumbai $44 Mn
Logistics 2015 Chennai $39 Mn
Fintech 2016 Delhi NCR $30 Mn
Media & Entertainment 2013 Mumbai $21 Mn
Enterprise Tech 2009 USA $16 Mn
Fintech 2017 Mumbai $15 Mn
Consumer Services 2017 Vadodara $10 Mn
Ecommerce 1997 Bengaluru $10 Mn
Fintech 2015 Mumbai $10 Mn
Note: This ranking is done based on the deals recorded in our internal database and the annual investor ranking survey.
Investor
Participation Trends
Investor Landscape Stage Wise Trends India’s Top Startup Investors
YoY Trends Celebrity Investors Of 2023 Startup Fund Launches Of 2023
India’s Startup Investor Landscape

VCs & PEs Family Funds & Offices
Falguni and
SanjayNayar Office
Corporates & CVCs Anand Mahindra’s Godrej family Kris Gopalkrishnan’s
family office office family office
Ananth Narayanan Haldiram's Three Sisters
Family Office family office Institutional Office
Falguni and Rajiv Dadlani Dragonfly

SanjayNayar Office Group
Accelerators & Incubators Venture Debts
Angel Networks & Syndicates
NOTE: THIS IS NOT A COMPREHENSIVE LANDSCAPE

Amidst Global Economic Uncertainty, The Number Of Investors Backing

Indian Startups Falls By 36%
2,500
2,000
Total Unique Investors
1,500
1,000
500
0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Investor Participation Declines Across All Funding Stages, Late Stage

Hardest Hit
Funding Stage 2023 2022 YoY Change
Seed Stage 905 1,653 -45%
Growth Stage 461 814 -43%
Late Stage 168 373 -55%
Source: Inc42
Film Industry Celebs And Their Startup Investments In 2023
AKSHAY KUMAR ALIA BHATT DEEPIKA PADUKONE DIA MIRZA EKTA KAPOOR KAJAL AGGARWAL
MALAIKA ARORA MASABA GUPTA NAYANTHARA

KAREENA KAPOOR KHAN SUNIEL SHETTY LUCKY ALI
PARINEETI CHOPRA SANJAY DUTT SHILPA SHETTY KUNDRA SUKHBIR SINGH
Source: Inc42
Sportsmen Who Backed Startups In 2023
AJINKYA RAHANE HARDIK PANDYA MS DHONI SOURAV GANGULY YUVRAJ SINGH
NEERAJ CHOPRA SACHIN TENDULKAR SHIKHAR DHAWAN VIRENDER SEHWAG
Source: Inc42
India's Top Startup Investors [2023]

Investor Name Investor Type Deal Count (2023) Startups Funded
AngelList India Angel Network/ Platform 180 Alt Carbon, CareFi, Dressfolk, Magma
LetsVenture Angel Network/ Platform 159 BotLabs Dynamics, Log9, Power Gummies, Sanfe
Stride Ventures Venture Debt 110 SUGAR Cosmetics, Slice, Agrostar, BlueStone, The Good Glamm Group
Alteria Capital Venture Debt 107 Giva, Kissht, Onecard, Bluestone, Ather, Perfora, Blissclub
We Founder Circle VC 103 University Living, BluSmart, Garuda, Rooter, PeeSafe
100X.VC VC 62 50Fin, BreatheESG, abCoffee, Aliste Technoligies, Arthum
ah! Ventures Group VC 55 Sapio Analytics, Twyn, Flexifyme, CarEasy, Sugar Watchers
Mumbai Angels Angel Network/ Platform 50 Blu Smart, Chargezone, Burger Singh, Bambrew, Gegadyne
Marwari Catalysts Accelerator/ Incubator 45 Jaipur Watch Company, U R Turms, Bank Sathi
IAN Group Angel Network/ Platform 38 Manastu Space, Seringen, Adya.ai, Evolve
Note: This ranking is based on data consolidated from Inc42’s Investor Ranking & Sentiment Surveys [2023, H1 2023 & Q3 2023], and deals recorded in the Inc42 database.
Trifecta Capital Venture Debt 37 Ace Turtle, Rooter, Atomberg Technologies, Entropik
Faad Network Angel Network/ Platform 37 Navadhan Capital, Castler, BluWheelz, BluSmart
SucSEED Indovation Fund VC 32 Lissun, Nesa, GameEon, Endimension, We360, Funngro
InnoVen Capital Venture Debt 30 Servify, Niro, Captain Fresh, Gradright, Betterplace
Blume Ventures VC 28 AtomicWorks, Freakins, Pico Express, Mysa, DPDZero
India Accelerator VC 27 HouseEzy, Inc42, Advanced Mobility, Optimizers, Matter
Gruhas VC 25 EMO Energy, Ossus Biorenewables, Basic Home Loans, 1% Club
IVY Growth Associates Angel Network/ Platform 25 Emotorad, Zypp Electric, Skippi Ice Pops, EnParadigm, Cleardekho
All In Capital VC 25 Hectar, Reint, Mannjal, Slick, Fantail, Salty
Venture Catalysts Accelerator/ Incubator 24 STAGE, Zypp Electric, Optimized Electrotech, Tagz Foods
3one4 Capital VC 23 Exponent Energy, Fasal, Dozee, HighXP
Antler VC 22 HouseEazy, Figr, Chainrisk, Bitsila, Mysa, Plotch, Covrzy
Titan Capital VC 22 P-Tal, Magma, Stable Money, Solar Ladder, Green Fortune, DevDham
Inflection Point Ventures Angel Network/ Platform 22 STAGE, BankSathi, Raaho, SuperCluster Pi, LoanKuber
Axilor Ventures VC 21 BoxPay, Solar Ladder, Doppelio, Fluxgen, LeRemitt, Oorja Energy
Harmony Lifestyles Group Family Office/Fund 20 Metafin, Biryani By Kilo, Agnikul, Lenden, Daalchini
Neon Fund VC 20 Profit.co, Atomicwork, GTMBuddy, Fincent, Crux, Mysa
Peak XV + SURGE VC & Accelerator 20 Sarvam AI, abCoffee, Plotch.ai, Digantara
The Chennai Angels Angel Network/ Platform 19 Batterypool, Sugar Watchers, Flutrr, Proost, Nutrizoe, Cultyvate
PIPER SERICA ANGEL FUND VC 17 Pantherun, Kisan Vikas Fintech, Castler Escrow Slutions
Matrix Partners VC 17 Toddle, Park+, Polytrade, Stable Money, Wootz.work
Accel VC 16 Captain Fresh, Innovist, Fundly.ai
India Quotient VC 16 Pop Club, DpdZero, General Autonomy, Reo.dev, Intoglo
Lightspeed Venture Partners VC 16 Sarvam AI, Pixxel, Bluelearn, Udaan, Exponent Energy
Rainmatter Capital CVC 15 Gytree, Emoha Elder Care, PeeSafe, MProfit
Sauce.vc VC 15 Hocco Ice Creams, Mokobara, Whole Truth Foods, Perfora, Supertails
Huddle Ventures VC 15 Litestore, Hyergro, Perfora, Mykare health, Efeed
Elevation Capital VC 14 SarvaGram, Rigi, Bluelearn, Mintifi
Eight Road Ventures VC 14 Exponent Energy, Enzene Biosciences, Safe Security, Bicara Therapeutics
Anicut Capital VC 13 Blue Tokai Coffe, CapGrid, XYXX, Uravu Labs
Nexus Venture Partners VC 13 Smartstaff, Wootz.work, Zepto, Giga ML
JITO Angel Network Angel Network/ Platform 13 Store My Goods, Uravu Labs, Hair Originals
ITI Growth Opportunities Fund VC 11 Cureskin, faasal, Coffeee.io,Redwing Labs, Brweed Leaf
Hyderabad Angels Angel Network/ Platform 11 Livo.ai, Skyair, wickedgud, BreathESG , ImmersiveLabs
First Cheque VC 11 ofScale, Blitz
Better Capital VC 11 STAGE, Toddle, Turns, Gullak, HYPD Store
GVFL Limited VC 11 Zujo Tech Private Limited,GhostKitchen, Evify Logistics, Lets Dress Up
Evolvex Accelerator Accelerator/Incubator 10 getplus.in, UcliQ, Car Easy, Rupid
Kaalari Capital VC 10 HerKey, Digantara, Zluri, Eloelo
Gemba Capital VC 10 Volt Money, Mannjal, Navadhan, FairDeal, Luru
Omnivore Ventures VC 9 BharatAgri, Fibmold, DGV, Farmley
Kalaari Capital VC 9 Digantara, Studio Sirah, AuditCue, EloElo
InfoEdge CVC 9 Gramophone, Transitry, AvatarLife, BrainSightAI
Silverneedle Ventures VC 9 Hypergro, Dhruva Space, Onfinance, Mainstreet Marketplace, Disprz
Unicorn India Ventures VC 8 Aurasure, HIWI, Isgoingonline, Esmito, DaalChini
Pentathlon Ventures VC 8 ExtraaEdge , Cutting Edge Digital, Actionable Science Inc
Y Combinator Accelerator/Incubator 8 Oneistox, Shaktimaan.ai, Clinkally, Giga ML
Fireside Ventures VC 8 Ripplr, Pilgrim, Gynoveda, Inito
IvyCap Ventures VC 7 Celcius, ZestIoT, Agraga, Expertrons
Chiratae Ventures VC 7 Curefoods, Pando, Pixis, Ergos
Prime Ventures VC 7 Dozee, HighXP, ZuAI, Bolt Earth
Avataar Ventures VC 7 InsuranceDekho, Chalo, Capillary Technologies, HealthPlix
Endiya Partners VC 7 Nkure, Zluri, Sugar.fit, Scrut Automation
2amvc VC 7 ONWO, Bluelearn
Bluehill Capital VC 7 Raptee, EtherealX, Skillveri, AutoNXT, Claritrics
Stellaris Venture Partners VC 7 Rigi, Turno, Zouk, Cirkla
Kettleborough VC VC 7 Sumosave, Finhaat, InPrime, VS Mani, Gigafun
She Capital VC 7 Trezi, Amana, SuperHire
Athera Venture Partners VC 6 Ati, Terra, Pixxel, Euler, PlayShifu, BluArmor
Blacksoil Venture Debt 6 Cellecor, CredRight, Kenko
Artha Ventures VC 6 GetWork, KarmaLife, Agnikul, Natch
GSF Accelerator/Incubator 6 Humblx, Legistify, Petmojo, Zekardo
Seafund VC 6 Redwings, Bestdoc, Docker Vision, Swapp Design, Simmatricals
Speciale Invest VC 6 StepChange, Newtrace, Agnikul, QNu Labs
Adept Ventures VC 5 Finsire, Clairco, Third Wave Coffee, Redcliffe Lifesciences
Temasek Sovereign Wealth Fund 5 Ola Electric, Atomberg Technologies, UpGrad, SarvaGram, Skyroot
Startup Movers Angel Network/ Platform 5 Ptal, pep.live, Krya Innovation
Redcliffe Capital Family Office/Fund 5 Revfin, Nona Lifestyle, Yobee Research, Stockal, AlphaaAI
TVS Capital CVC 5 SarvaGram, InsuranceDekho, PhonePe
BEENEXT VC 5 StepChange, CoverSelf, Phi Commerce, Scimplifi
Cornerstone Venture Partner Fund VC 5 THB, Mystifly, Blubirch
Sony Innovation Fund CVC 5 Tricog, Lokal, ToonSutra, Zyla, Woovly
Flipkart Ventures CVC 5 Castler, FlexifyMe, Algomage
Jungle Ventures VC 4 Builder.ai, Atomberg Technologies, NIC, Showroom B2B
Westbridge Capital VC 4 Credgenics, Third Wave Coffee, Design Cafe, TrackWizz
Agility Ventures VC 4 Earkart, Proost69, TagZ Foods, ZEVO
Campus Fund VC 4 Formi, Digantara, D-Nome, Plutus
Fluid Ventures VC 4 Koparo Clean, Redesyn, Eske, Beautywise
IFC Financial Institution 4 Mintifi, Bizongo, Kuku FM, Onsurity
Orios Venture Partners VC 4 NxtWave, HYPD Store, Unnati
Tiger Global Management VC 4 PhonePe, Infinite Uptime, Battery Smart, Captain Fresh
Steadview Capital VC 4 Zetwerk, Atomberg Technologies, Aequs Group, Mayhem Studios
Multiply Ventures VC 3 BharatX, Superfoods & Fundly
PeerCapital VC 3 Bidso, Flash, Vaaree
Leo Capital VC 3 BuyStars, QuickReply.ai, TradingLeagues
NB Ventures VC 3 ElectricPe, Sorted, STAGE
Aavishkaar Capital VC 3 Ergos, Newtrace, INI Farms
Java Capital VC 3 Frigate, Oorja Development Solutions, AuditCue
A91 Ventures VC 3 GIVA, Blue Tokai Coffe, Kaar Tech
V3 Ventures VC 3 Kuku FM (follow on), Entri, Dil Foods and Go Zero
Kae Capital VC 3 ONWO, Hippo Video, Disprz
Elevar Equity VC 3 SarvaGram, Niro, Peepul Tree
Pi Ventures VC 3 Zero Cow Factory, SwitchOn, Agnikul
69% Decline In Funds For Startups Announced In 2023

Fund Launches In 2023: A Stagewise
20
Outlook
18 No. Of Funds Capital

15
Total Fund Corpus ($ Bn)
Early Stage 31 $1.8 Bn+
10 Early To Growth 14 $1 Bn+
Growth Stage 5 $331 Mn+
5 6
5.6 Growth To Late Stage 7 $1.7 Bn+
Late Stage 2 $161 Mn+

0
2021 2022 2023
Agnostic 5 $496 Mn+
Source: Inc42
Note: Includes funds announced for Indian startups. Announcement includes — launch announcements, first close and full fund closures.
Based on the data for the period between January 1 and December 25, 2023
Funds Worth $5.6 Bn+ Announced For Indian Startups In 2023

Fund Name Fund Type Fund Size Stage Focus Sector Focus
3one4 Capital (Fund IV) VC Fund $200 Mn Early Stage Consumer Internet, SaaS, Fintech
AdvantEdge (Fund III) VC Fund $100 Mn Early Stage EV
Aeravti Ventures VC Fund $12.1 Mn Early & Growth Stage Deeptech, Biosciences, Agritech, Climate, Enterprise Tech
Agri-Focused Accelerator Fund Govt Fund Undisclosed Stage Agnostic Agritech
Airavat Global Technology Fund R VC Fund $40 Mn Late Stage Consumer, Financial Services, Technology & Pharma
Antler India (Fund I) VC Fund $75 Mn Early Stage SaaS, Fintech, Generative AI
Arkam Ventures VC Fund $180 Mn Early & Growth Stage Financial Services, Food & Agri, Healthcare, Logistics
Asha Ventures (I)*** VC Fund $100 Mn Early Stage Financial Services, Healthcare, Education, Climate
Avaana Capital VC Fund $70 Mn Early & Growth Stage Energy Transition & Resource Management
B Capital (Growth Fund III)* VC Fund $2.1 Bn Early Stage Enterprise Tech, Fintech, Healthtech, SaaS, Cybersecurity
Note: Includes funds, investment corpus announcements between January 1 and December 26, 2023 | The funds have been placed in alphabetical order
*Funds which have India as one of the focus markets | **Announced in multiple tranches | ***Announced first close
B Capital (Healthcare Fund I)* VC Fund $500 Mn Early To Late Stage Digital Health, Biotech
Blume Continuity Fund VC Fund $24.4 Mn Growth Stage Consumer Internet, SMB Marketplaces, SaaS
BoldCap VC Fund $25 Mn Early Stage SaaS
CapFort Ventures VC Fund $24.3 Mn Early Stage Deeptech, Cleantech, B2B Tech, Logistics, Healthtech
Capria Ventures* VC Fund $100 Mn Early & Growth Stage AI, Climate Tech
CarTrade Ventures CVC $91.3 Mn Stage Agnostic Automotive
Chanakya Opportunities Fund I VC Fund $12.5 Mn Early Stage Sector Agnostic
Chiratae Ventures(Growth Fund I) VC Fund $122 Mn Growth Stage Sector Agnostic
Courtside Ventures (Fund III) VC Fund $100 Mn Early Stage Sports, Online Gaming & Lifestyle
Creaegis (Fund I) PE Fund $75 Mn Growth & Late Stage Sector Agnostic
Dallas Venture Capital VC Fund $42.6 Mn Stage Agnostic Enterprise Tech
Early Spring VC Fund $12.2 Mn Early Stage Home & Personal Care, Health & Wellness
Elev8 Venture Partners VC Fund $67 Mn Growth Stage Consumer Tech, Enterprise Software, Fintech, Healthtech
Epiq Capital (Fund II) VC Fund $235 Mn Growth & Late Stage Tech, Tech Enabled
Good Capital VC Fund $50 Mn Early Stage AI
gradCapital VC Fund $6 Mn Early Stage Sector Agnostic
Grayscale Ventures VC Fund $20 Mn Early Stage AI, SaaS, Dev-Infra
GrowthCap Ventures VC Fund $6 Mn Early Stage Fintech, SaaS, Deeptech
IAN Alpha Fund (II)*** VC Fund $119 Mn Early Stage Cleantech, Healthtech, Fintech, Deeptech, Spacetech
Incubate Fund Asia (Fund III)* VC Fund $50 Mn Pre-Seed & Seed Sector Agnostic
Iron Pillar (Fund II) VC Fund $129 Mn Growth & Late Stage SaaS
Java Capital VC Fund $6 Mn Early Stage Deeptech, Climate Tech, B2B
Kae Capital (KWF II) VC Fund $50 Mn Growth Stage Sector Agnostic
Lighthouse Canton Debt Fund $67.3 Mn Growth Stage Sector Agnostic
Lighthouse Canton's LC Nueva AIF VC Fund $42 Mn Early & Growth Stage Sector Agnostic
Lumikai VC Fund $50 Mn Early & Growth Stage Gaming, Interactive Media
MIXI Global Investments CVC $50 Mn Early & Growth Stage Entertainment, Consumer Services
Multiples PE (Fund IV) PE Fund $640 Mn Growth & Late Stage Sector Agnostic
Nexus Ventures (Fund VII)* VC Fund $700 Mn Stage-Agnostic AI, SaaS, Fintech & Commerce
Omnivore (Fund III) VC Fund $150 Mn Early & Growth Stage Agritech, Climate Sustainability
Pantomath's India Inflection Opportunity Fund (IIOF) - $60 Mn Growth & Late -
PeerCapital*** VC Fund $75 Mn Early & Growth Stage Fintech, Healthtech, Enterprise Tech, Climate Tech
Pentathlon Ventures (Fund II) VC Fund $54 Mn Early Stage B2B SaaS
Physis Capital VC Fund $50 Mn Early Stage Sector Agnostic
Pi Ventures (Fund II)** VC Fund $85 Mn Early Stage AI, Deeptech, Blockchain, Spacetech, Biotech
Piper Serica Angel Fund $9.1 Mn Early Stage Technology
Prath Ventures VC Fund $6.1 Mn Early & Growth Stage Consumer Services
RealTech Fund - $6 Mn Early Stage Proptech
Rockstud Capital (Investment Fund II) Angel Fund $36.4 Mn Early & Growth Stage Digitalisation, ESG, Fintech, Consumer Services
RTP Global VC Fund $1 Bn Early Stage To Growth Stage AI & ML, B2B SaaS, DevOps, Fintech,
SenseAI (I) VC Fund $25 Mn Early Stage AI
Singularity Growth Opportunities Fund (II)*** PE Fund $180 Mn Growth & Late Stage Consumer, Manufacturing, Enterprise Software
Soonicorn Ventures VC Fund $30 Mn Early Stage Drone Tech, Electric Vehicles, Fintech
Sorin Investments** VC Fund $156 Mn Early Stage Fintech, Edtech, SaaS, Logistics, Cleantech, D2C Products
Speciale Invest (Growth Fund I) VC Fund $24.4 Mn Early Stage Spacetech, Green Hydrogen, Robotics, Green Mobility
Sprout Venture Partners (II)*** VC Fund $15 Mn Early Stage Sector Agnostic
Stride Ventures (Fund III) Debt Fund $100 Mn Stage Agnostic Sector Agnostic
The Neon Fund VC Fund $25 Mn Early Stage B2B SaaS
Together Fund (II) VC Fund $150 Mn Early & Growth Stage SaaS, AI
Trifecta Capital (Fund III) Debt Fund $213 Mn Stage Agnostic B2B, Consumer Services, Consumer Brands, Ecommerce
Unicorn India Ventures (Fund III) VC Fund $120 Mn Early Stage SaaS, Digital Platforms, Climate Tech, Agritech
Unitus Ventures (Fund I and Fund II) VC Fund $40 Mn Early Stage AI, Climate Tech
V3 Ventures* VC Fund $109.5 Mn Early Stage Digital, Consumer Business
ValuAble Debt Fund $100 Mn Early & Growth Stage Sector Agnostic
Varanium Capital Debt Fund $30.2 Mn Early Stage D2C, SaaS, B2B Ecommerce, Fintech
Veda VC VC Fund $30 Mn Early Stage SaaS, Consumer Services, Fintech, Deeptech
Vertex Master Fund III* VC Fund $900 Mn Early & Growth Stage Consumer, Enterprise, Fintech, Sustainability, Healthtech
Vertex Ventures Southeast Asia & India (Fund IV)* VC Fund $541 Mn Early Stage Enterprise Tech, Fintech, Consumer Internet, Healthtech
VQ Scale Fund PE Fund $121 Mn Late Stage Sector Agnostic
WinZO (Game Developer Fund) CVC $50 Mn Stage Agnostic Online Gaming
Women Entrepreneurs Early Growth Fund I VC Fund $15 Mn Early & Growth Stage Climate Tech, Agritech, Healthtech, Edtech, Fintech
Xponentia Capital (Fund II) PE Fund $120 Mn Growth & Mid-Market Consumer Internet, Healthcare, Financial Services
Z3Partners VC Fund $67.3 Mn Early & Growth Stage Digital & Technology
Zero To One VC Fund $36.5 Mn Early Stage Edtech, Healthtech, Agritech, Medtech, Cleantech
Key Sectors In Focus For Funds Announced In 2023
B2B
Cleantech & Deeptech
Sector Agnostic Climate 8 6
SaaS &
Enterprisetech 16 13
19
AI Ecommerce &
Consumer/
8 D2C Brands
Consumer
12 5
Fintech
Health 16
16 Agritech Spacetech
10 4
Source: Inc42
Unicorns & Soonicorns

Unicorn Landscape Unicorn Race: India Vs Others Future Unicorns
The Rise Of Unicorn Club Soonicorn Landscape
India’s Unicorn Landscape

ECOMMERCE
FINTECH
ENTERPRISETECH
CONSUMER
SERVICES MEDIA & ENTERTAINMENT EDTECH
LOGISTICS HEALTHTECH OTHERS
Source: Inc42
Note: The number of unicorns refers to the number of Indian startups that have ever touched $1 Bn valuation. In some cases, the startups might not be valued at $1 Bn or above.
Indian Startup Ecosystem Minted Only Two Unicorn In 2023, Lowest In Six Years
50
40
Total Unicorn Count
30
20
10
0
Up to 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Source: Inc42
Note: Unicorns refers to the number of Indian startups that have ever touched $1 Bn valuation. In some cases, the startups might not be valued at $1 Bn or above | Zoho is not included in the representation
India Ranks Third Globally In Unicorn Count

Rank Country Unicorn Count
1 USA 650+
2 China 172+
3 India 112
4 Israel 94
5 United Kingdom 52
6 Germany 30
7 France 25
8 Canada 21
9 Singapore 16
10 Brazil 16
Source: Inc42 (India), TechAviv (Israel), CB Insights (all others)

India’s Soonicorn Landscape

FINTECH
ECOMMERCE TRAVEL
TECH
ENTERPRISETECH CONSUMER SERVICES
MEDIA & ENTERTAINMENT EDTECH LOGISTICS
OTHERS
Source: Inc42
Note: Soonicorn refers to the number of Indian startups that are valued at or above $200 Mn.
Fintech Poised To Generate The Largest Number Of Future Unicorns In India
Others
19.1%
22 Fintech
32.2%
37
Travel Tech
7
6.1%
Indian
Soonicorns
Edtech
7
6.1%
Media & Entertainment 7

6.1% 18
Ecommerce
15.7%
17
Enterprisetech
14.8%
Source: Inc42
Note: Soonicorn refers to the number of Indian startups that are valued at or above $200 Mn.
New Age Tech IPOS

The 2023 IPOS Public Markets Performance Anticipated New Age Tech IPOS
Of New Age Techs In 2024
5 Indian Tech Startups Got Listed In 2023

IPO Subscription Breakup Listing At Premium/ Valuation At The
Listing Price Discount To Issue Price Time Of IPO
Retail QIBs HNIs/NIIs
INR 1,300 (NSE)

85.20X 125.81X 80.58X INR 1,305.1 (BSE) ~94% Premium $336 Mn
1.35X 11.5X 4.02X INR 330 (NSE) ~2% Premium $1.25 Bn

INR 324 (BSE)
INR 127.5 (NSE)

2.11X 2.05X 0.42X INR 130 (BSE) 8% - 10% Discount $270 Mn
6.4X 2.81X 3.8X INR 185 (NSE SME) 12% Premium $167 Mn
INR 164 (NSE)

5.94X 16.73X 8.85X INR 162 (BSE) ~1% discount $240 Mn
Anticipated New Age Tech IPOs In 2024

Company Name DRHP Status IPO Size Bottomline
Filed INR 160 Cr+ INR 46.64 Cr (FY23)
Filed INR 1,816 Cr+ INR 486 Cr (FY23)
To Be Filed NA INR 3.9 Cr (FY23)
Refiled INR 3,500 Cr INR 295.8 Cr (FY22)
To Be Filed NA INR 5 Cr (Q2 FY24)
Filed INR 5,500 Cr INR 1,472 Cr (FY23)
Pre-filed INR 3,286 Cr - INR 4,929 Cr INR 1,286 Cr (FY23)
To Be Refiled INR 1,500 Cr (previous DRHP) INR 55.7 Cr (FY23)
To Be Filed NA INR 126 Cr (Standalone FY22)
Approval Received INR 1,000 Cr INR 53.8 Cr (standalone FY22)
To Be Filed NA INR 3,629 Cr (FY22)
To Be Filed NA INR 6.4 Cr (FY23)
Red: Loss | Green: Profit

Source: Company Filings, DRHPs, Media Reports
Indian Startups In The Public Markets

Company Name 2 Jan' 23 27 Dec'23 YTD % Change
292 741 154%
60 127 110%
1,049 2,024 93%
452 782 73%
475 727 53%
614 859 40%
143 189 32%
3,912 5,154 32%
601 788 31%
Source: NSE, Inc42 Analysis

Note: YTD data is from 2 Jan’23 to 27 Dec’23 | Mamaearth, IdeaForge, Zaggle, Yatra & Yudiz are not included here.
Fund Name 2 Jan' 23 27 Dec'23 YTD % Change
17 22 29%
2,164 2,777 28%
88.3 111 26%
532 635 19%
332 384 16%
155 173 12%
250 261 5%
595 566 -5%
54 39 -28%
Source: NSE, Inc42 Analysis

Note: YTD data is from 2 Jan’23 to 27 Dec’23 | Mamaearth, IdeaForge, Zaggle, Yatra & Yudiz are not included here.
Inc42’s Annual
Investor & Founders Survey
Indian Startup Founders Vs Investors: Key Metrics For 2024

Investors Founders
Key Focus Metric: Early Stage Top-Line Growth Customer Acquisition
Key Focus Metric: Growth Stage Operating Profit Top-Line Growth
FY25: The Right Time For IPOs Yes (95%) Yes (69%)
Conservative Market Sentiment In 2024 Yes (54%) Yes (88%)
Source: Inc42’s Annual Founder & Investor Sentiment Survey, 2023

Note: Based on a survey of 400+ Indian startup founders and 75+ Indian startup investors
The State Of Indian Startup Ecosystem: Decoding The Investor Sentiment
Seed Stage Late Stage 38%

Voted As Most Preferred Voted As Least Preferred Of Investors Failed To Deploy Even 50% Of
Funding Stage In 2023 Funding Stage In 2023 Their Allocated Budget In Startups In FY24
56% 34% 95%

Indian Investors Recorded Of Indian Startup Investors Recorded Of Indian Investors Believe 2024 Will
Portfolio Exits In 2023 2X-5X Returns On Exits In 2023 Be A Good Time For Startups To IPO
55% Operating Profit Total Revenue

Of Indian Startup Investors Believe Key Metric To Focus For Growth Key Metric To Focus For Early
2024 Will Be A Good Time For Exits Stage Startups In FY25 Stage Startups In FY25
Source: Inc42’s Indian Startup Investor Ranking & Sentiment Survey, 2023
Note: Based on survey of 75+ Indian startup investors. The percentage numbers are rounded off.
Seed Stage Startups Was The Preferred Choice Of Investors In 2023

Yet, the seed stage witnessed 72% and 37% YoY drop in funding and amount in 2023
Rank Funding Stage % Of Total Respondents
1 Seed Stage 78%
2 Growth Stage 19%
3 Late Stage 3%
Question: What was your preferred stage for funding Indian startups during the calendar year 2023?
Unfinished Business: Over A Third Of Investors Failed To Deploy Even

50% Of Their Allocated Budget In Startups In FY24
70 to 100%
50 to 70%
1 to 30%
30 to 50%
More than 100%
0% 10% 20% 30% 40%
% of total respondents
Question: How much of your intended investment budget for FY24 have you utilised to date?
54% Of Indian Startup Investors Expect Continued Conservative

Investment Sentiment In 2024
46%
Indian Startup
Investors 54%
Yes No
Question: Do you anticipate a continuation of conservative investor sentiment towards Indian startup investments in the upcoming calendar year 2024?
Investors Take: What Should Be The Priorities For Early & Growth Stage
Startups In FY25?
Top-line Operating
revenue profit
growth
Operating Market
profit expansion
Low cash Low cash burn

burn
New Top-line
customer revenue
acquisition growth
Market New customer

expansion acquisition
0% 5% 10% 15% 20% 25% 0% 20% 40% 60% 80%
% of total respondents % of total respondents
Question: What, in your view, should be the primary metric for growth stage startups to
Question: What, in your view, should be the primary metric for early focus on in FY25?
stage startups to focus on in FY25?
The State Of Startup Exits

56% Indian Investors Recorded Exits More Than One-Third Of Indian Startup Investors
In Portfolio Startups In 2023 Recorded 2X-5X Returns On Exits In 2023
2X to 5X
6X to 10X
11X to 20X
44%
Indian Startup 21X to 30X
Investors 56%
Less than 2X
More than 51X
30X to 50X
0% 10% 20% 30% 40%
Yes No % of total respondents
Question: Have you recorded any exits in the calendar year 2023? Question: What was the total return from your exits in the calendar year 2023?
Investors View: The State Of Startup Exits & IPOs

55% Of Indian Startup Investors Believe 95% Of Indian Investors Believe 2024 Will Be A
2024 Will Be A Good Time For Exits Good Time For Startups To IPO
16%
Yes
Indian Startup
Investors 55%
29%
No
0% 25% 50% 75% 100%
Yes Maybe No % of total respondents
Question: Do you think the calendar year 2024 will be a good time for exits? Question: Do you think FY25 is an opportune year for Indian startups to pursue IPOs?
Inc42's Indian Startup Founder Survey 2023
84% Low Ad Spend Top-Line Growth 69%

Indian Startups Encountered Voted As The Most Popular Indian Founders Believe FY23
To Remain Top Priority For
High Difficulty In Raising Cash Conservation Is The Ideal Time For Startup
Startups In FY25
Funds This Year Strategy In FY24 IPOs
90% A Third 76%

Of Indian Startup Founders Aiming Of Founders To Opt For Appraisals Indian Startup Founders Are Eager
For Team Expansion In FY25 Below 20% In FY25 To Ramp Up Ad Spend In FY25
74% 40% More Than Half

Indian Startups Are Eager To Of Founders Say Layoffs Dampen Job Seeker Of Indian Founders Expect 50% Or More
Ramp Up IT Spends In FY25 Enthusiasm For Joining Startups Increase In Revenue In FY25
Source: Inc42’s Indian Startup Founder Sentiment Survey, 2023

Note: Based on survey of 400+ Indian startup founders
How Did Indian Startup Founders Conserve Cash In FY24?

40%
30%
20%
10%
0%
No cash Low Ad spend Conservative Reduction in new Salary cuts: Senior Low IT spend Salary cuts:
conversation market expansion hires Management Comapany-wide

Note: Based on survey of 400+ Indian startup founders. The percentage numbers are rounded off.
Question: In your view, which cash conservation strategy was most effective for your company in the current financial year (FY24)?
Indian Startups To Focus On Doubling Revenue & Customer Base In FY25
Top-line
revenue growth
New customer
acquisition
Operating profit
Market expansion
Low cash burn
0% 10% 20% 30% 40%
Question: What will be your company’s primary guiding metric for the upcoming financial year (FY25)?
More Than 80% Founders Faced High Difficulty In Raising Funds In 2023
10%
High difficulty
Raising capital in 2023

Low difficulty
Indian Startup
28%
Founders
62%
Moderate
0% 25% 50% 75% 100%

Did not raise capital in 2023 Yes No
Question: Was raising capital more challenging for you in this calendar Question: Please rate, on a scale of 1 to 10, the level of difficulty you faced in raising venture capital funding
year (2023) compared to the previous year (2022)? during the calendar year 2023.
Indian Startup Founders Expect Positive Shift In Funding Scenario In 2024

Majority Of Startup Founders Plan Majority Of Startup Founders Expect Positive
To Raise Funds In 2024 Investor Sentiment In 2024
12%
28%
Indian Startup Indian Startup

Founders Founders
72%
88%
Yes No
Yes No
Question: Are you planning to raise venture capital in the calendar year 2024? Question: Do you anticipate a positive shift in investor sentiment towards Indian startups in the
calendar year 2024?
Could FY25 Be The Right Time For Startup IPOs?
80%
60%
40%
20%
0%
Yes No

Question: Is FY25 the ideal time for Indian startups to consider initial public offerings (IPOs)?
Did Funding Winter Put A Speed Bump On Startup Hiring?

34% Of Indian Startups Expanded Teams Team Expansion On 90% Of Startup F
By More Than 30% In FY24 ounders’ FY25 Agenda
100%
10 to 30%
75%
1 to 10%
More
than 50% 50%
30 to 40%
25%
40 to 50%
0% 10% 20% 30% 40% 0%

% of total respondents Yes No
Question: By what percentage have you increased your team size in FY24 so far? Question: Are you planning to expand your team in FY25?

Funding Winter Effect? More Than A Third Of Founders To Opt For Appraisals
Below 20% In FY25
10 to 20%
20 to 30%
1 to 10%
30 to 40%
More than 50%
40 to 50%
0% 10% 20% 30% 40%

Question: What is the average/median appraisal that you intend to offer your employees in the coming financial year (FY25)?
Startups Losing Appeal For Job Seekers? 43% Of Founders Say Layoffs
Dampen Job Seeker Enthusiasm For Joining Startups
14%
43%
Indian Startup
Founders
43%
Yes Maybe No
Question: Following the mass layoffs in 2022 and 2023, do you think employees will still consider startups as a secure career choice?
ESOPs Maintain Charm Among Startup Employees Despite Shutdowns,

Layoffs & Valuation Markdowns, As Per Founders
Yes
Maybe
No
0% 20% 40% 60%

Question: Considering the valuation cuts, shutdowns, layoffs, and other challenges faced by startups, do you believe Employee Stock Ownership Plans (ESOPs) still carry positive sentiment among employees?
Corporate Governance: Increased Investor Scrutiny, But Is It Effective?

44% Of Indian Founders Witnessed More Than Half Of Indian Founders Rate Investors'
Increased Investor Scrutiny In 2023 Corporate Governance Measures As Moderately
Or Barely Effective
Effectiveness Of Corporate Governance Measures

High
44%
Indian Startup Moderate
Founders 56%
Low
0% 10% 20% 30% 40% 50%
% of total respondets
No Yes
Question: Amid reports of corporate governance lapses at startups, did your startup Question: Rate the effectiveness of these measures in countering corporate misgovernance in
witness an increase in investor checks, scrutiny and reviews? Indian startups, in your view.
More Than 70% Of Indian Startups Eager To Ramp Up Ad & IT Spend In FY25
Yes 76% Yes
Most Indian startups Most Indian startups

No plan to raise ad spends No plan to raise IT spends
by 20% to 30% by 10% to 30%
0% 20% 40% 60% 80% 0% 20% 40% 60% 80%
% of total respondents % of total respondents
Question: Are you planning to increase your advertising spends in FY25? Question: Do you plan to increase your Information Technology (IT) expenditure in FY25?

Half Of Indian Founders Expect 50% Or More Increase In

Revenue In FY25
20 to 50%
More than 100%
50 to 80%
1 to 20%
80 to 100%
0% 10% 20% 30% 40%
Source:Inc42’s Indian Startup Founder Sentiment Survey, 2023
Question: What is the projected percentage increase in your annual revenue for FY25 compared to FY24?
For 2024
Predictions For 2024

VC & INVESTORS POLICY & GOVERNANCE NEW AGE TECH IPOS
Bigger Focus On Early-Stage AI Investments With An Eye Serious Legal Consequences For Startup Rise In New-Age Tech IPOs Due To
For Quick Exits Founders Caught In EOW Probes Improvement In Market Sentiment
Consolidation Of Portfolio Between Firms Amid Ongoing Corporate Governance Debacles Will Derail More Number Of Smaller Size IPOs To Take
Restructuring, Rejigs More Unicorns Place
Dry Powder Will Go To Portfolio Companies Closer To IPOs Social Security Code To Be Pushed Through New-Age Tech IPOs Worth Over INR 30,000
After Much Delay Cr Anticipated In 2024
Pressure On Funds To Deploy Capital That’s Close To
Expiry National Ecommerce Policy Likely To Disrupt Reasonable Valuations Will Be The Focus
Ecommerce, Consumer Services
Fundraising Will Be A Struggle For VCs With Low Profitability Will Decide The Success Of IPOs
Returns On Existing Capital India AI Policy Will Become A Topic Of Hot
Debate Swiggy, Ola Electric To Be The Most
Bigger Government Scrutiny, Angel Tax Hurdles For Anticipated New-Age Tech IPOs
Overseas Funds Startups Will Start Seeing Implications Of
Digital Personal Data Protection Act More Companies Will Go For Public Listing
Private Equity Will Pose Stronger Competition To VCs In After The 2024 General Elections
IPO-Bound Startups Stricter Rules For Social Media With
AI-Generated Content Rising Indian Startups To Shun Overseas Listing
VCs To Focus On Non-Tech, Traditional Sectors Better Idea
Suited For IPOs
HNIs And QIBs Will Continue To Drive Up
Consumer Bets At The Late-Stage Likely To Boom IPOs Subscriptions
Big Tech Will Turn Investors Again After A Quiet Few Years

FINTECH GAMING CLIMATE TECH
Fintech Super Apps Will Foray Into Consumer Services Real Money Gaming Growth To Remain Green Hydrogen Sector To Boom
Verticals Muted
Circular Economy & Recycling Will
Funding To Remain Slow Except In Digital Lending, Platform Cost-Optimisation, Diversification Of Receive More Importance With The
Models Real Money Gaming Startups Passing Time
High Valuation Fintech Giants, Listed Companies To Drive Top Lines Of RMG Startups To Take A Sustainable Agriculture & Food
M&As 60-70% Hit (Alternative Sources of Protein, Meat,
Supplements) To Cater To An
Climate & EV Financing Will Emerge As New Areas Of Investors To Show Increasing Interest In Increasing Number Of Consumers
Growth Casual Gaming, Mid-Core Gaming
The Intersection Of AI & Climate Tech
Jio Financial Services Will Eat Into Market Share Of Giants Early-Stage Funding In Casual, Mid-Core To Find More Use Cases; For Instance
Gaming Studios To Increase In Large Plants Producing Solar Power,
Reverse Flipping Of Fintech Unicorns Eyeing India Listings Etc.
Made-In-India AAA- Like Games To Be
UPI’s Product Spree, Global Foray To Continue Launched EV Is No More The “Hot” Sector Within
Climate Tech, More Funding And
Lending Tech Set For Another Disruption With ONDC, Credit Ad-Revenue, In-App Purchases To Go Up Innovation To Happen In Other
On UPI For Core Gaming Sub-Sectors
Automation, AI/ML Engines Will Reduce People Dependency Demographic Of Gamers To Become Sustainable Aviation Fuel, Water
More Diverse Conservation, Low-Carbon Cement,
Regulatory Focus On Payments Gateway, API Banking To Gain More Momentum
Fintech-Bank Partnerships Will Take On A New Colour


EDTECH ECOMMERCE
Edtech Growth To Emerge From Tier II Cities & Beyond Amazon-Flipkart Duopoly Likely To Weaken With Rise Of Meesho & Co
Vernacular Content To See An Increased Adoption National Ecommerce Policy Will Disrupt Best-Laid Plans
Edtechs To Reduce Fees, Making Them Affordable ONDC Penetration To Grow Among Larger Marketplaces
Integration Of GenAI To Empower Edtech Platforms Reliance, Tata, Aditya Birla Group Acquisition Appetite To Grow
Consolidations Will Rise In The Sector Omnichannel Plays Will Dictate D2C Brand Success
BYJU’S-Like Instances Will Add To Sectoral Woes D2C House Of Brands, Roll-Ups Will Begin To Fold
Funding To Remain Slow Except For Hybrid Models Vertical Ecommerce — Growing Consolidation In Key Categories
Offline Players To Venture Into Edtech Arena In A Big Way Geopolitical Tensions Will Clip Global Ambitions Of B2B Players
A Call For Edtech Regulation Will Become Stronger


CONSUMER SERVICES GENERATIVE AI
Consumer Services Will Get Costlier With Increasing Platform Fees High-Level Talks For Global AI Regulations Will Begin To Crystallise
Second Order Impact From National Ecommerce Policy Generative AI Will Become A Key Battlefront In High-Profile Elections
Services Giants Will Turn Focus To Consumer Durables, Goods Indian Language AI Models, LLMs Will Start Seeing Adoption
Social Security Code Will Finally Kick In For Gig Platforms Policy Talk Around Ethical AI, Deepfakes To Grow Louder
Quick Commerce Players Will Step Into Marketplace Territory Big Tech’s Dominance Will Manifest Through Large Acquisitions
ONDC Will Add New Dimension To Competition In Mobility Emergence Of Business Models Around LLM Ops, On-Premise LLMs
Mobility Giants Will Look To Accelerate EV Transition Plans Vertical Generative AI Will See A Breakout Year
Quick Commerce Giants To Eye Retail Tech Acquisitions More Startups Will Harness Generative Video For Content Creation
Swiggy IPO Will Add To Zomato’s Revenue Appetite AI-Generated SaaS Will Look To Take On Enterprise Tech Giants
Generative Coding Will Change Cybersecurity Game
Enterprises, Larger Startups To Appoint Chief AI Officers

www.inc42.com
Inc42 is India’s largest tech media & information platform on a

mission to build & serve India’s tech, startup & internet economy.
CREDITS
ANALYST
From breaking the latest news to discovering the hottest startups,
SANDEEP SINGH
from spotting upcoming trends to simplifying complex concepts, we
cover everything tech in India’s internet economy.
DESIGN
Born in January 2015, Inc42 has become the leading source for news SABITH
& analysis on India’s rapidly growing tech, startup & internet economy.
Inc42, with over 35,000+ published stories, 80+ research reports, 120+
conferences & events & having featured 1000s of entrepreneurs, now
reaches over 25 Mn+ tech leaders & professionals every month. ADDRESS
Inc42 Media, 59/16, 4th Floor, Jujhar Tower,
RD Marg, Kalkaji, New Delhi, Delhi 110019
Contact: editor@inc42.com
DISCLAIMER
The data provided in this report has been obtained from public and private sources. We have made every attempt to ensure that the
information presented in this report is accurate and free from any discrepancies. Ideope Media Pvt Ltd, the parent company of Inc42 Media
and Inc42 DataLabs, is not responsible for any inaccuracy in the information presented or for any damages caused by the use of information
provided in this report. In case of any discrepancy or errors in the data, you can contact us at editor@inc42.com and we will try our best to
update the information in the digital version of the report. We are constantly updating our database of startups due to new person using or
relying on any information in this publication.
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* F U N D I N G
FUNDING WI K D OW NS
NTER * M&As
* UNICORNS V E STO R * MAR
S
*
N T
S *
O T
PO P I N
s * U N I CO R I N V E S TO R S *
OS * M & A E M E RG I N G H
E T EC H I P U BS * N E W A
NE W AG G

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INDIAN TECH

02 The State If Indian Startup Economy YoY Trends

06 Indian Startup Funding Trends 11 The State Of Unicorns & Soonicorns

Indian Startup Funding: 2023 In Review

897+ Ecommerce 1.5K+

India To Have 900 Mn+ Active Internet Users By 2025

Smartphone Internet Penetration 5G Enabled Indian

Cost Of 1GB Number Of Female

SOURCE: IAMAI, INC42 ANALYSIS

The State Of Indian Startup Economy

1.3K+ M&A Deals Recorded 25 Listed Indian Internet Companies

Indian Startup Landscape

Global Startup Ecosystem Comparison: India vs The USA vs China

India China USA

Funding CAGR (2014 to 2023) 7% 35% 38%

No. Of Unicorns 112 172+ 650+

Total Internet Users 759 Mn+ 1.1 Bn+ 311 Mn+

Internet Penetration* 64% 76% 92%

Source: Inc42, CB Insights, Crunchbase, Global Times

1.8L Tech Startups In India By 2030

Indian Startup Economy: The State Of Funding & Exits

Deal Count 897+ 1.9K+ 1.6K+ 953+

Total Unique Investors 1.5K+ 2.4K+ 2.4K+ 1.1K+

Number Of M&As 123+ 240+ 210+ 82+

No. Of New Age Tech IPOs 5 3 11 0

Note: 2023 data is as of December 25

$146 Bn+ Raised By Indian Startups Since 2014

Funding Amount ($ Bn) Deal Count

Funding Amount Deal Count

Mega Deal Count Hits Six-Year Low In 2023

Top 10 Biggest Funding Rounds Of 2023

Ecommerce Late Stage $600 Mn* Abu Dhabi Investment Authority

Ecommerce Late Stage $600 Mn Walmart

Cleantech Late Stage $384 Mn Temasek Holdings, SBI

Ecommerce Late Stage $340 Mn Lightspeed Venture Partners, DST Global

Fintech Late Stage $229 Mn Kedaara Capital

10 Most Funded Sectors Of 2023

Top 10 Sectors (2023)

Media & Media &

0 50 100 150 200 0.00 1.00 2.00 3.00 4.00

Deal Count Funding Amount ($ Bn)

Indian Startup Funding: Sector Overview

Fintech $3 Bn+ 129+ $4.8 Bn+ 262+ $8 Bn+ 290+

Enterprisetech $1.3 Bn+ 157+ $4 Bn+ 292+ $3.7 Bn+ 248+

Fintech Startup Investments In 2023 Lending Tech Remain Investor Favourite

3.6% Lending Tech

Fintech Startup Funding Deals Cut To Nearly Half Across Stages

Funding Amount Deal Count

2023 2022 % YoY Change 2023 2022 % YoY Change

Median Ticket Size ($ Mn): Seed Stage

Seed Stage (RHS) Growth Stage Late Stage

10.0 B2C Ecommerce

4.0 100 ($ Mn) 53.7%

Funding Amount ($ Bn) Deal Count

B2B Ecommerce 25 D2C

Top Funded Startup Of 2023 Lenskart

Seed & Growth Stage Ecommerce Funding Worst Impacted In 2023

Late Stage Growth Stage Seed Stage

Funding Amount Deal Count

2023 2022 % YoY Change 2023 2022 % YoY Change

Growth Stage $543 Mn+ $949 Mn -43% 39 71 -45%

Late Stage $1.9 Bn+ $2.5 Bn+ -24% 16 41 -63%

Median Ticket Size ($ Mn): Seed Stage

Seed Stage (RHS) Growth Stage Late Stage

Inc42's Annual Funding Report 2023

Inc42's Annual Funding Report 2023