Tech start-ups raise $885m in funding in August, down 20% from July: report
Indian tech start-ups secured $885 million in funding in August through 102 seed rounds and 9 acquisitions, according to a monthly report by tracking platform Tracxn.
Investments fell 20%, funding rounds 8% and acquisitions fell 18% from July, according to the report. Bangalore led in total funds raised, followed by Mumbai and Delhi.
Quarterly funding for tech start-ups peaked in Q3 2021 at $14.8 billion and has been steadily declining since then. India’s funding winter is expected to continue for the next 12-18 months.
Edtech is going through a tough time marked by companies laying off employees, but the report says the sector continues to attract investor attention. “Continuous learning, alternative learning, e-commerce enablers and investment technology are the top sectors that received the most investor funding in August 2022,” the report said.
Despite the funding winter, edtech unicorn UpGrad raised $210 million in funding in August, with plans to hire 2,800 full-time and part-time faculty over the next three months. This follows a fundraising of $225 million in June. It also comes at a time when other big players like Unacademy, Byju’s and Vedantu have collectively laid off around 2,500 employees this year, the report said. “UpGrad expects to reach $500 million in gross revenue in FY23,” the report said.
Others that have raised a large amount of funding include EarlySalary, a Pune-based fintech start-up, which secured $110 million. The company offers instant loans to young employees. Fintech unicorn Razorpay has acquired Ezetap, a Bangalore-based point-of-sale solution provider, for $200 million to make offline payments.
Beenext, LetsVenture, Accel, Blume Ventures were the main investors in August.