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Leading data analytics firm Global Data has revealed July to be the first month of 2022 where total venture capital (VC) funding raised by Indian startups fell below $1 billion. The VC funding value plunged by a massive 58.7% to $907.5 million last month. It further states that the deal volume also fell by 9.6% compared to the previous month.
The cumulative announced VC funding deal volume for January to July was 1,108, while the corresponding value stood at $16.5 billion. The average deal size more than halved from $15 million in June 2022 to $7 million in July, due to the drop in the volume of big-ticket deals.
Aurojyoti Bose, the lead analyst at GlobalData, said, “In addition to the volatile market conditions, investors’ shift in focus towards sustainable business models and profitability seem to be taking a toll on the VC funding activity in India.”
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Private equity players and venture capitalists around the world were scrambling to have a share of the Indian startup ecosystem, but tables have turned due to the harsh funding winter.
As of July 2022, India has only witnessed two VC funding deals valued over $100 million. These include BluSmart Mobility, which raised $250 million, and $102 million raised by FPL Technologies (OneCard).