Funding in startups dropped by 17% to USD 6 billion in April-June: Nasscom

Funding in startups dropped by 17 per cent on quarter-on-quarter foundation to USD 6 billion (about Rs 47,800 crore) within the April-June interval, trade physique Nasscom has stated.

According to the Nasscom quarterly funding factbook on tech startups compiled in affiliation with PGA Labs, offers additionally dropped by about 17 per cent resulting from dampened market sentiments however regardless of discount in deal worth, funding in development stage continued to extend.

The report stated, “16 large ticket size deals helped generate total funding of USD 6 billion in the second quarter (Q2) of calendar year (CY) 2022. Startup ecosystem witnessed the birth of 4 new unicorns in Q2 CY22, taking the tally to 20 unicorns in the first half.” Around 26 per cent of the overall funding went to fintech section.

“Large ticket deals like CRED and Dailyhunt resulted in an overall increase in total investments in fintech and media and entertainment sectors, contributing around 45 per cent of total funding in Q2, CY22,” the report stated.

Fifty-two per cent funding was within the ticket measurement of USD 100 million or above with Dailyhunt and ShareChat elevating massive rounds.

Growth stage offers contributed 58 per cent of the overall funding through the reported quarter because the investors-backed startups have already reached a sure scale, the report stated.