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Today: May 16, 2024
January 4, 2024
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PE-VC Investments Plummet 38% in 2023, Below $30B: Report Reveals

• 70% of start-up founders are incorporating artificial intelligence into their solutions.
• PE-VC investments saw a decline of 38% in 2023, dropping below $30 billion.
• IT and ITeS companies accounted for $8 billion of total PE-VC investments in 2023.
• Nawgati received an undisclosed investment from GAIL Ltd to expand its fuel outlet platform.
• MobiKwik board has approved the issuance of Rs 880 crore in fresh equity shares for public listing.
• Larkai Healthcare raised $500,000 to develop healthcare technology and strengthen sales verticals.
• Meesho turned profitable with a decrease in loss to Rs 141 crore in the first half of FY24.
• SCOPE launched a $45 million venture capital fund for the fintech and gaming sectors.
• Co-living start-up Settl. raised Rs 10 crore from investors for expansion.
• FirstCry’s revenue doubled to Rs 5,632 crore in FY23, but net loss widened to Rs 486 crore.
• InCred raised $60 million in funding, becoming the second unicorn of the year.
• CoinDCX experienced a drastic drop in trading volume due to a 30% tax on cryptocurrencies.

PE-VC investments in India witnessed a decline of 38% in 2023, falling below $30 billion, according to a report. The IT and ITeS sectors accounted for $8 billion of the total PE-VC investment pie in 2023, representing a significant decrease compared to the previous year. However, 70% of start-up founders are still incorporating artificial intelligence into their solutions, highlighting its growing importance in the start-up ecosystem.

Nawgati, a start-up focusing on fuel outlets, secured an undisclosed investment from GAIL Ltd. This investment will allow Nawgati to expand its platform and include a diverse range of fuel outlets, making it a fuel-agnostic platform.

MobiKwik, a digital payments platform, has received approval from its board to issue Rs 880 crore in fresh equity shares for public listing. This move is part of MobiKwik’s plan to go public and expand its presence in the Indian market. The company will also engage in a pre-IPO placement as part of the listing process.

Larkai Healthcare, a start-up in the healthcare sector, raised $500,000 in funding. The company aims to develop the next generation of technology in healthcare and strengthen its sales verticals through strategic investments.

Meesho, an e-commerce platform, achieved profitability with a decrease in loss to Rs 141 crore in the first half of FY24. The company reported a 77% increase in revenue from operations in the previous financial year, showcasing its growth in the e-commerce sector.

SCOPE, a financial services company, launched a $45 million venture capital fund designed for the fintech and gaming sectors. The fund will provide strategic capital, mentorship, and access to a vast network of industry experts, supporting the growth and development of start-ups in these sectors.

Settl., a co-living start-up, raised Rs 10 crore from investors to support its expansion plans. The Settl. platform allows users to search for and rent shared living spaces, addressing the growing demand for flexible living options in urban areas.

FirstCry, a parenting e-commerce platform, reported a doubling of revenue to Rs 5,632 crore in FY23. However, the net loss widened to Rs 486 crore, indicating the challenges and costs associated with scaling a start-up in a competitive market.

InCred, a digital lending start-up, raised $60 million in funding, achieving unicorn status. This marks the second unicorn of the year in the Indian start-up ecosystem, highlighting the growth and potential of the fintech sector.

CoinDCX, a cryptocurrency exchange, experienced a significant drop in trading volume due to a 30% tax on cryptocurrencies. The tax policy impacted the trading activity on the platform, leading to a decrease in revenue for the company.

Overall, these developments in the Indian start-up ecosystem showcase the challenges and opportunities faced by start-ups across various sectors. Despite the decline in PE-VC investments, start-up founders continue to emphasize the importance of incorporating artificial intelligence into their solutions. The funding and expansion plans of companies like Nawgati, MobiKwik, Larkai Healthcare, and Settl. demonstrate the resilience and growth potential of the Indian start-up ecosystem. However, the financial performance of companies like Meesho, FirstCry, and CoinDCX highlights the risks and challenges associated with scaling and achieving profitability in a competitive market.

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