The Financial Express | 27 December 2023
While 2023 saw the funding winter becoming harsher for startups across the board, the scenario is unlikely to change much in the new year. While there is some optimism among a section of the investor community about a gradual rebound, most rule out a quick recovery.
In 2023, funding in Indian tech startups hit the lowest in five years, as per Tracxn data, continuing a funding slump that began in the middle of last year. “If we start seeing a reversal in some of the macro issues, one can then expect a gradual improvement in the funding environment,” said Ashish Sharma, managing partner at venture debt firm InnoVen Capital.
He expects funding to remain sluggish in the year ahead. “From an India standpoint, there are two other things to keep an eye on — the general elections and the performance of tech companies that have gone public.”