Price Waterhouse logo installed on the façade of its office in Mumbai. , Photo Credit: Reuters
Startups in India received $24 billion in funding in calendar 2022, a 33% decline from calendar year 2021, but still more than double the amount of money raised in CY20 and CY19 each, according to PwC India 11 Reported on Jan.
PwC’s startup deal tracker for 2022 found that early-stage funding increased by 12% compared to CY21, indicating that despite the global slowdown, investors were still optimistic about the Indian start-up ecosystem. In addition, the SaaS segment saw a 20% increase in funding value during CY22 as compared to CY21, and an increase of about 25% in all funding activities last year, as per the report.
Amit Navka, Partner – Deals & India Startups Leader, PwC India said, “Despite the decline in funding, there remains enthusiasm in some areas such as SaaS and early-stage funding. With significant dry powder (cash reserves) awaiting investment, it looks like the funding scenario will start normalizing after 2-3 quarters.
According to PwC Deal Tractor, early-stage deals accounted for 60-62% of total funding in CY22 in terms of volume, with an average ticket size of $4 million per deal. In value terms, early-stage deals contributed around 12% of total funding in CY22 as compared to around 7% in CY21. Growth- and late-stage funding deals accounted for 88% of funding activity in CY22 in terms of value. Growth-stage deals and late-stage deals had average ticket sizes of $43 million and $94 million, respectively.
On the M&A front, there has been a 17 per cent decline in transactions in Calendar Year 22 as compared to Calendar Year 2021 in terms of deal volume, with 60 per cent transactions being accounted for by the SaaS, e-commerce+D2C and EdTech sectors. contribution. E-commerce and D2C (61) and SaaS (60) witnessed the highest number of M&A transactions during the calendar.
Bengaluru, NCR and Mumbai attracted around 82% of the total share of funds received across the country in CY22.