India has 27K active tech startups

February 16, 2023

The NASSCOM report recently said that there are more than 27,000 startups in India. Of these, tech startups count to 1,300. The report further said that India is the third largest tech startup holder in the world. The US is the first largest tech startup holder and China is in second place. India also has the second-highest number of unicorns in the world. In 2022 alone, India added 23 unicorns.

Concerns raised in the report

The total funding to Indian startups decreased by 24% in 2022-23. In 2019, that is, before the pandemic, the investments in startups were 13.1 billion USD. It decreased in 2020 and increased largely in 2021. In 2021, the investments in startups were higher than the pre-pandemic levels. It reached 18.2 billion USD in 2021. However, it reduced in 2022.

Why did startup funding reduce in 2022?

According to the NASSCOM report, the fear of global recession and increasing interest rates made investors risk-averse. This slowed down the funding momentum.

Current Scenario as explained by the report

In 2022-23, the focus was on non-unicorns
More than 1,400 startups received funding in 2022. This is 18% higher than in 2021.
Seed stage investments increased to 1.2 billion USD in 2022-23
Early-stage investments increased to 5.9 billion USD in 2022-23
Late Stage investments declined by 41%