TLDR:
– VC funding in India declined from $25.7 billion in 2022 to $9.6 billion in 2023.
– Mega-deals saw a 70% decline, but smaller deals maintained investor confidence.
In the India Venture Capital Report 2024 by Bain & Company, the Indian VC landscape in 2023 is depicted as both resilient and adaptive in the face of global caution. Key findings include:
- Funding moderation with a decline from $25.7 billion to $9.6 billion in 2023.
- Shifting investor sentiment due to factors like inflation and interest rates leading to a decline in deal volume.
- Sectoral trends showing tech dominance but traditional sectors gaining traction.
Investor and fundraising trends in the Indian startup ecosystem point towards a more democratic landscape with a focus on exit strategies and domestic VCs stepping up. The future of Indian venture capital in 2024-25 is marked by cautious optimism, with a focus on profitability and deep-tech innovations in sectors like B2C e-commerce, SaaS, and clean energy.
