35% drop in funding to retail-fintech startups

India's startup ecosystem under the impact of the economic downturn

Ahmedabad: The impact of the economic slowdown has been seen in India's startup ecosystem. As of December 5, funding in retail and fintech startups has decreased by 35 percent compared to last year. 24.7 billion dollars have been invested in startups in India till December 5 this year. The information comes from Startup Data platform traction statistics.

According to the report, investments in the retail and fintech sectors have seen a lot of softening and startups in these sectors have been affected the most. If we talk about late stage funding, compared to January to November last year, there has been a decrease of 45 percent in the period from January to November this year.

Last year the amount of late stage funding was 29.3 billion dollars which has decreased to 16.1 billion dollars this year. In the third quarter of the current calendar year, funding has decreased by 58 percent. If we compare with the third quarter of 2021, there has been a decrease of up to 91 percent in funding in the third quarter of the year.

The last month, however, seems to have brought a new ray of hope in terms of startup funding. However, it would still be premature to say that the bad days of startup funding are behind us. We will have to wait another quarter or two to know the true state of startup funding after which it will be understood how much interest investors are showing in startups in India.

Talking about the funding received in the last one year, Bize has received funding of 965 million dollars, while Swiggy has received 700 million dollars, Tata Passenger has received 496 million dollars and Polygon has received 450 million dollars.

In 2018, Indian startups received a total of $12.2 billion in funding. In 2019, it reached 17.3 billion dollars. In the year 2020, the figure of startup funding was 11.8 billion dollars, while in 2021 it reached 41.4 billion dollars. In the year 2022, the startup has received an investment of 24.3 billion dollars so far.