The Q3 CY22 report shows a decrease in start-up funding in India, with a total of USD 2.7 billion across 205 deals. This is the lowest funding in two years. Investors are becoming more selective, focusing on path-to-profitability, especially in growth-to-late-stage companies. The decline in funding is noted across all stages of investment, with the least impact on early-stage deals, where the average ticket size is between USD 4-5 million. Venture capital firms continue to support the Indian start-up ecosystem. The FinTech and SaaS sectors continue to attract the most capital in Q3 CY22. The report also includes an analysis of global dry powder in the venture capital ecosystem, which shows a significant accumulation of capital waiting to be deployed.
