Indian Startup Funding Plunges to 6-Year Low After High-Profile Failures

Investors are cutting back on funding for Indian startups, investing less money in fewer deals after some high-profile failures.

Startup funding dropped sharply in 2022 to a 6-year low of $8 billion, compared to $36 billion in 2021. The drop was steeper than in the US and China.

Paytm, Byju's, and Ola saw valuations plunge despite no major crisis, making investors more cautious on growth projections.

Investors are shifting focus to more stable, profitable companies compared to high-growth tech firms.

The funding pullback could impact India’s economy and job creation which has relied heavily on startups in recent years.