Tracxn Startup Report: Funding Drops by 80% Compared to Q3’21 ($14.9Bn)

Tracxn releases its Q3’22 India Quarterly Startup Report: Funding drops by 80% compared to Q3’21 ($14.9Bn)

Tracxn, a globally-leading SaaS-based market intelligence platform, today released its Tracxn Geo Quarterly Report: India Tech Q3 2022. The report is Tracxn’s quarterly proprietary document that tracks the Indian startup ecosystem by delineating the funding raised by startups, investors’ exits through acquisitions and IPOs, and the wider trends in the fundraising landscape.

According to the report, Indian startups raised $3B in Q3 2022 (July-Sept), which was 57% lower as compared to the previous quarter. The average ticket size also witnessed a drop across all funding stages, with the late stage seeing the biggest fall of over 70%, from $142M in Q3 of 2021 to $42M in Q3 of 2022, indicating that investors are not willing to make large investments until economic conditions stabilise.

The top three sectors that received the maximum funding in this quarter were Alternative Lending, Genomics and Payments. Genomics is an upcoming sector with great potential but remained untapped by investors till now. It saw maximum investor interest in Q3 2022, receiving over $231M in funding, which is higher than the total funding received in the year 2021. 

The five companies that raised funding rounds of $100M+ in this quarter were :

EarlySalary, 5ire, InsuranceDekho, OneCard, and BookMyShow with the most active investors being Better Capital, Venture Catalysts and Surge. Out of the 334 funding rounds closed in Q3, the top 3 funding rounds were completed by EarlySalary ($110M- Series D), CleverTap ($105M- Series D), and OneCard ($102M- Series D). 

Some of the other key highlights of the report include 109 startups closed their first funding round, 3 startups turned unicorns, 39 startups got acquired, and 2 filed for their IPOs. Molbio Diagnostics, 5ire and OneCard turned unicorns and Zopper, LifeCell, Jar, DotPe, Vegrow

Bigspoon, InsuranceDekho, CUSMAT, Airtribe and Serentica Global joined the Soonicorn club.

Speaking on the launch of their report, Neha Singh, Co-Founder, Tracxn said, “Our quarterly startup report confirms that India is currently experiencing a funding slowdown which is expected to continue for the next 12-18 months and the effects of the funding slowdown are expected to intensify going forward. Executives across the world anticipate a recession in the near future and are making preparations to cut costs. To add to their woes, the recent energy crisis in the UK and Europe and also the sliding GBP and EUR have increased the likelihood of a global recession.”