Indian Startups Raised $1.2 bn In January : Report

PhonePe and KreditBee led the $1.2 billion in funding raised by Indian entrepreneurs in January. In January, despite difficult socioeconomic conditions and a capital constraint, Indian startups raised around $1.2 billion.

Data from Fintrackr, a division of startup news site Entrackr, shows that in the first month of 2023, growth-stage startups saw 22 deals totaling $926 million.

Twelve startups did not publish transaction details, but early-stage startups received $265 million across 67 deals. The report states that the typical deal value for early-stage startups was close to $4 million.

Nearly 40% of the total financing in January was made up of the $350 million funding round for PhonePe and the $120 million funding round for KreditBee.

More agreements were made in the e-commerce (including D2C startups) sector, and fintech maintained its dominance with $587 million in total funding

According to the report, Bengaluru was the leading city with 60 deals, followed by Delhi-NCR with 15. In January, there were 18 mergers and acquisitions across several sectors in the Indian startup ecosystem.

According to a PwC India report, in 2022, funding for Indian startups was close to $24 billion, down 33% from CY21 but still more than twice as much as was raised in CY20 and CY19 combined.

88% of CY22's financial activity came from growth and late-stage investment arrangements (in value terms). According to the PwC India report, the average ticket size in growth-stage deals was $43 million, and $94 million in late-stage deals during CY22.