Indian Startups Raise $2 Billion in Q3 2023, Layoffs Continue to Rise

Chennai: Indian startups raised $2 billion across 226 deals in the September quarter as the month of September saw investments bouncing back to $1 billion.

As per the data compiled by TheKredible, Indian startups raised $2 billion across 226 deals during Q3 2023 or the September quarter. This includes 34 growth-stage deals worth $1.58 billion and 153 early-stage deals amounting to $418.6 million. There were 39 undisclosed deals with the majority of startups in the early stage.

 In comparison, 366 Indian startups had raised nearly $2.9 billion in funding in the third quarter of last year. Even in the June quarter, $2.6 billion was invested across 253 deals. In the March quarter, 229 deals amounting to $3.4 billion were disclosed.

The month of July began on a low note as total fund inflows to Indian startups slipped below the $500 million mark for the first time in the past three years. August also saw less than $500 million in funding despite producing the first unicorn of this year (Zepto) that raked in $200 million alone. However, there was a sign of revival in September when the total infusion for the quarter crossed the $1 billion milestone after a gap of three months.

However, on a quarterly basis, Q3 saw the lowest funding in 2023, 2022, and 2021.

The number of layoffs continued to rise as more than 30 startups fired 7,000-8,000 employees in the third quarter of 2023. Moreover, three gaming-focused startups announced a shutdown of operations. The number of layoffs and shutdowns is expected to be higher.

During the first six months of 2023, 15,000 employees were given pink slips across 60 startups. Overall, 2023 has already surpassed 2022 data when the startup ecosystem saw layoffs of 20,000 employees.