Fund inflows into Indian startups were flat in November compared to the previous month. Startups in the country managed to score $1.3 billion in 130 deals comprising 26 growth stages and 104 early-stage startups, according to data compiled by fintrackr. This also included 23 undisclosed deals.
This is in line with the amount raised in October which was $1.26 billion in 94 offers.
So far, Indian startups have raised $25 billion in the last 11 months. If the trend continues, this year may end with startups raising about $26 billion in total funding, significantly lower than the $38 billion raised in 2021.
Unlike the first half of 2022, when startups absorbed nearly $20 billionthe second half experienced a sharp decline with a slowdown in the global market.
The decrease in funding can be seen in the following monthly trend:
Top 10 Growth Stage Deals
Funding in November would have been much less had it not been for three SaaS startups like Icertis, Amagi and Content Stack (with major operations out of India) that collectively raised $340 million to push the overall numbers to over $1 billion.
The complete database can be seen here.
Among growth-stage startups, Bira91, Cover Genius, Clove Dental, Healthkart, and Lentra raised more than $50 million each. In total, growth-stage startups raised $942 million of the $1.3 billion in November.
Top 10 early-stage deals
Early-stage startups raked in $361 million in November. HRtech startup Keka raised the highest among them with $57 million, followed by green hydrogen startup Hygenco. Rest, including Even, Sukoon, Prismforce, SolarSquare and Silver Edge, among others, raised less than $20 million each.
Nearly two dozen startups also announced their funding round without disclosing transaction details. While most of them are in an early stage, B2B e-commerce platform Udaan and electric vehicle startup Ultraviolette were among the growth-stage companies.
Offers by segment and by city
Data compiled by fintrackr shows that seed capital Bengaluru once again held onto the top spot with $636 million across 51 deals. Delhi-based startups NCR raised around $423 million in 39 deals and Mumbai, Chennai and Ahmedabad were next on the list.
As for the segment, fintech was at the top in terms of number of deals. However, SaaS startups raised more money. Healthtech, D2C and Edtech brands were in the top 5 list.
Funds focused on startups
On 90 VC, PE and debt funds announced the launch of its new fund starting in July of this year, according to a report from tracker. Since then, about two dozen more venture capital and debt firms have announced fund launches. The list includes Fundamentum, Stride Ventures, Merak Ventures, Cactus Ventures, Elev8 Venture Partners, StartupXseed, Blacksoil, Kettleborough VC, Fireside, Avatar Ventures, Alteria Capital and IAN.
In November, seven funds, including Capital of QuonaKae Capital, Transition VC, Yatra Angel Network and Pi Venture announced its launch.
Trends
layoffs: Layoffs continued to haunt the Indian startup ecosystem in November. About eight Indian startups laid off more than 1,200 employees last month. While most of them saw layoffs for the first time, for Udaan and Unacademy this was their second round of layoffs this year.
Debt financing in growth stage startups: As in October, debt financing in growth and late-stage startups also continued in the past month. Udaan and Rebel Foods have raised back-to-back debt funds in recent months. Dunzo and ReshaMandi also joined the list of growth-stage companies in debt financing.
Startup funds continue with their new launch: Despite winter funding, hedge and debt funds continued to advertise their new release. After a fall in August Y SeptemberEleven funds were announced in October, while seven funds were announced in November.
There is no unicorn in november: Indian startups failed to create a new unicorn in October or November. Curiously, agricultural technology Y GO saw no unicorns despite being one of the best-funded segments in 2022. In September, healthcare tech startups Molbio and 1mg entered the club, while Zomato-backed Shiprocket achieved status in the previous month. .
