TLDR:
– Over 35,000 startups shut down in 2023 due to funding winter in India.
– VC funding for tech platforms expected to shift to traditional sectors.
In 2023, the Indian startup ecosystem faced challenges with over 35,000 startups closing down due to funding winter. A report by Bain & Company highlighted a decline in deal volume and average deal size, with a focus shifting to traditional sectors. Despite the challenges, India remained the second-largest destination for Venture Capital and growth funding in the Asia Pacific region. Tech startups saw a decline in funding, while investors showed interest in sectors like BFSI, consumer brands, and healthcare. Generative AI applications attracted funding, although fundraising declined by 50%. The report predicts a potential revival and transformation in the startup ecosystem in 2024.
