Indian Startups: A Billion-Dollar Leap in May 2023

In May 2023, Indian startups surpassed the $1 billion funding mark, a significant recovery from the previous month’s sharp decline. The top five companies accounted for more than half of the total funds raised in May. According to data compiled by Fintrackr, 91 startups managed to raise $1.01 billion in May, a minor 2% increase from the $990 million raised in April.

A Closer Look at the Numbers

Growth and late-stage startups secured $756 million across 16 deals, while early-stage startups bagged $255 million across 63 deals. However, 12 startups did not disclose their transaction details. The month-on-month trend for the past five months shows a fluctuating pattern, with January seeing 101 deals amounting to $1.1 billion, falling to $859 million in February, rising to $1.3 billion in March, and then falling below $1 billion in April.

Top Deals and Emerging Sectors

In the top 10 growth stage deals, Byju’s, PhonePe, Atomberg, Chalo, and Ripplr secured significant funding. SaaS leads the pack in terms of the number of deals in May, with these companies raising over $62 million across 11 deals. However, edtech remained on top when it came to the amount raised, with Byju’s receiving $250 million in debt.

The Road Ahead

Despite the crests and troughs in this year’s funding trends, the overall theme has remained the same: a conservative approach to funding by investors with cost-cutting among most companies to extend their runway. The number of smaller-size deals seems to be roughly similar to 2021, indicating that investors are comfortable making smaller bets in this environment.

Reference: https://entrackr.com/2023/06/indian-startups-raised-more-than-1-bn-in-may-entrackr-report/