Venture capital (VC) reserves in Indian startups plunged over 38% in 2022 as economic uncertainty and market unpredictability affected fundraising and investment activities, GlobalData said on Tuesday. In a statement, GlobalData said an investigation of its financial deals database divulges that “a total of 1,726 VC funding deals worth $20.9 billion were announced in India in 2022 compared to 1,715 transactions worth $33.8 billion in 2021.”
“The ongoing economic indecision and market volatility continue to affect the fundraising and investment actions in India and subsequently VC investment in the country startups suffered a massive year-on-year 38.2 % decline in price terms during 2022,” the data and analytics business said.
Aurojyoti Bose, the lead predictor at GlobalData, said India is a key Asia-Pacific market and stands just next to China in the rapport of VC funding deals by volume and value.
India described a 5.1 % and 6.3 % share of global VC funding value besides volume, respectively, in 2022.
While the US, the UK, and China recorded a decline in VC funding deal volume in 2022 compared to the earlier year, India stood out as a notable exception and recorded 0.6 % growth.
The average magnitude of VC funding deals, which stood at $19.7 million in 2021 fell to $12.1 million in 2022. The sum of VC deals valued more than or equal to $100 million announced in India stood at 42 in 2022 as associated with 86 during the previous year.