Indian Tech Startup Funding Report 2023

Since 2022, the Indian startup ecosystem has experienced a significant correction from its 2021 peak. In 2023, total funding reached $10 Bn+, representing a 60% drop from 2022 and a sharp 76% fall from the peak in 2021. Notably, this is a seven-year decline in funding for the Indian startup ecosystem.

Mirroring the funding trends, investor participation in 2023 also saw a decline from the previous year. Over 1,500 startup investors were involved this year, a 37% decrease from the more than 2,400 recorded in 2022.

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Indian Tech Startup Funding Report 2023

Quoted & Trusted By

the economist
business insider
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the huffington post
the economic times
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the times of india

Key Highlights

$10 Bn+

Total Funding Raised In 2023

$2.2 Mn

Median Ticket Size Of Investment


Sector With Most Deals


Total Number Of Active Investors Participating


New Unicorns Minted In 2023


Mergers and acquisitions

Table Of Contents

  • Indian Startup Funding: 2023 In Review
  • The Rise Of India's Digital Economy
  • The State Of Indian Startup Economy
  • Indian Startup Landscape
  • India Vs US Vs China: A Comparison
  • Indian Startup Launches
  • Indian Startup Funding Trends
  • Sector-Wise Analysis & Trends
  • Stage-Wise Analysis & Trends
  • Geographic Trends
  • Gender Diversity: The State Of Startup Funding
  • Valuation Markdowns
  • The State Of Startup M&As
  • Startup Funding: Investor Participation Trends
  • Startup Fund Launches Of 2023
  • The State Of Unicorns & Soonicorns
  • The State Of New Age Tech IPOs
  • The Pulse Of Tech: Inc42’s Annual Investor & Founders Survey
  • Trends & Predictions For 2024


Investor sentiment in the startup ecosystem is increasingly favouring seed stage investments, a shift from the earlier focus on growth and early stages. According to Inc42’s annual survey, gathering insights from over 75 Indian startup investors, a significant 78% of them favoured seed stage investments in 2023. This contrasts with just 19% and 3% preferring growth and late-stage investments, respectively. Despite the fact that over 38% investors failed to deploy even the 50% of the allocated startup investment targets for FY24, the future outlook remains optimistic. A considerable 95% of investors predict favorable IPO conditions for startups in 2024. Furthermore, over half (55%) anticipate a positive environment for exits, underscoring renewed confidence in the sector's potential for growth and liquidity. This optimism signals encouraging opportunities for Indian startups in funding and exit strategies as the new year approaches.

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