Value of VC start-up investments India 2014-2023

2023 witnessed a significant decrease in VC start-up investments across India, valuing over eight billion U.S. dollars compared to over 18 billion U.S. dollars in 2022. 2021 was a record year for start-up investments, however, 2022 witnessed a decline of 42 percent on a year-on-year basis. 

Dampened investor confidence

Investor confidence was hit amid the global slowdown in 2022, leading to a decrease in venture capital and private equity funding activity. The geopolitical situation in the form of Russia’s war on Ukraine upset the supply chains. To deal with rising inflation, central banks across the globe raised interest rates, in turn, increasing the cost of capital. Furthermore, the Indian rupee’s depreciation impacted the dollar returns for PE/VCs. Although there was a decline in the growth of overall funding value, seed and bridge funding was the most preferred stage of investment by investors in 2022.

Enterprise tech is the future

  The enterprise tech sector produced the highest number of unicorns in 2022 and investor confidence seemed to be positive for the sector during the next financial year. Enterprise Tech refers to software or hardware that serves an enterprise. It is used to aid the completion of tasks at a company. The startups in this sector are developing technology in business intelligence, cloud, and cybersecurity among others.