TLDR:
Key Points:
- VC funding for startups in India dropped by 63% to $9.6 billion in 2023.
- Funding for generative AI surged to $250 million in 2023 from $15 million in 2022.
According to a report by Bain & Company, venture capital funding for Indian startups plummeted to $9.6 billion in 2023 from $25.7 billion in 2022, marking a 63% decline. Despite the cautious investment climate due to global macroeconomic conditions, funding for generative AI saw a significant rise to $250 million in 2023. Analysts predict a rebound in sectors like B2C commerce and software & SaaS in 2024, with increasing investor maturity and operational efficiency among startups. Sai Deo, a partner at Bain & Company, highlighted the positive signs of growth in 2023, emphasizing the evolution of both investors and startups in terms of sector focus and operational practices.
