This is the startup funding ecosystem report based on available data until February 2024. It is short and precise.

1. STARTUP
FUNDING
ECOSYSTEM
By: ANSHUMAN NAYAK

2. Introduction
The Indian startup funding ecosystem
has grown dramatically in recent years,
because of a combination of factors
such as a large consumer market,
growing digital penetration, and a
favorable regulatory environment. As
of October 2023, India had over
180,000 startups. India has over
22,000 active startup investors and
111 unicorns worth $349.67 billion.

3. Table of contents
Ecosystem Trends of
Startup Funding
Emerging
Trends
01 02
03 04 Gaps In Startup
Funding

4. Ecosystem
01

5. 7 Ways to Fund Startups
Venture Capital (VC)
VC is a sort of private equity and finance provided by investors to start-ups and small firms
with the potential for rapid growth. Wealthy individuals, investment banks, and other
financial institutions are the most common sources of venture capital.
Angel investors
Someone who lends money to businesses, including startups, in exchange for convertible
debt or ownership stock. Angel investors frequently provide support to firms at an early
stage or when most investors are unwilling to back them.
Business Incubators
Organizations that assist startups in developing their businesses, particularly in the early
stages. They offer technical assistance and advice, initial development funds, networking
and linkages, collaborative spaces, lab facilities, mentoring, and advisory services.
Friends and family
This is believed to be one of the safest and most trustworthy methods of funding since the
person providing you the money trusts you enough.
crowdfunding
This is a strategy of obtaining funds that involves the collaborative efforts of friends, family,
consumers, and individual investors.
Govt. Schemes
The government has launched many initiatives to help and promote Indian entrepreneurs.
These schemes give ambitious companies with collateral-free loans, allowing them to have
access to low-cost capital.
Grants
This form of funding is often available to firms involved in the research and development
process. The government provides grants to them since the majority of these companies are
controlled and governed by the government.

6. Investment Stages
Seed Stage Fund
These Funds are
investment funds
that invest in
startups during the
seed stage, which is
the first stage of a
company's life
cycle.
01
Early Stage Fund
These Funds are
investment funds
that specialize in
giving financial
assistance to
startups during
their early phases
of growth.
02
Growth Stage Fund
These Funds are
investment funds that
specialize in providing
financial support to
startups during their
growth stages
03

7. Top Seed Stage VC
VC YEAR
KEY
PERSONNEL
FUND
RAISED
TOTAL
DEALS
KEY SECTORS KEY INVESTMENTS
India
Quotient
2012
Anand Lunia,
Madhukar
Sinha
$185.7M 145 Fintech, Tech
Your Nest
Venture
Capital
2011
Sunil Goyal,
Girish Shivani
$161.2M 65
Deep Tech,
Enterprise Tech
3one4
Capital
2016
Pranav Pai,
Siddarth Pai
$518.5M 156
Fintech, Deep
Tech, SaaS
Beenext 2015 Teruhide Sato $368.6M 311
Fintech, E-
Commerce, Agri
Tech, AI
Source: Crunchbase, QuintEdge

8. Top Early Stage VC
VC YEAR KEY PERSONNEL
FUND
RAISED
TOTAL
DEALS
KEY SECTORS KEY INVESTMENTS
Accel India 2005
Subrata Mitra,
Prashanth Prakash
$1.2B 53
IT, SaaS,
Fintech, Media
Matrix
Partners India
2006
Avnish Bajaj, Rishi
Navani
$721M 212
AI, B2B
Commerce,
Ed-Tech
Blume
Ventures
2010
Karthik Reddy, Sanjay
Nath
$652.6M 334
Agri Tech, AI,
gaming, EV
Kalaari
Capital
2011 Vani Kola $479M 229
Consumer,
Enterprise
Lightbox
Ventures
2014 Sandeep Murthy $398.4M 51
Tech,
Consumer
Stellaris
Venture
Partners
2016
Ritesh Banglani, Alok
Goyal
$275M 73
B2B,
Consumer,
Fintech
Source: Crunchbase, QuintEdge

9. Top Growth Stage VC
VC YEAR KEY PERSONNEL
FUND
RAISED
TOTAL
DEALS
KEY
SECTORS
KEY INVESTMENTS
Peak xv
(Sequoia
Capital)
2000
Shailendra Singh,
Mohit Bhatnagar
$3.9B 651
Tech,
Consumer
Nexus
Venture
Partners
2006
Naren Gupta,
Sandeep Singhal
$2.6B 343
A.I., Fintech,
Enterprise,
Consumer
Elevation
Capital (SAIF
Partners)
2001
Ravi Adusumalli,
Deepak Gaur
$1.1B 383
Consumer,
Tech
Norwest
Venture
Partners
1961
Promod Haque,
Matthew Howard
$12.6B
(globally)
43
Consumer,
Healthcare,
Enterprise
Chiratae
Ventures
2006
Sudhir Sethi, TCM
Sundaram
$759.4M 148 Tech, B2B
Inventus
Capital
Partners
2007
Kanwaljit Singh,
Rutvik Doshi
$258.8M 60
Tech,
Consumer
Source: Crunchbase, QuintEdge, Peak xv

10. Trends of Startup
Funding
02

11. Top 10 Sectors
1764
1668
1451
797
783
717
686
512
472
325
0 500 1000 1500 2000
Enterprise Tech
E-Commerce
Fintech
Health Tech
Consumer services
Edtech
Media & Entertainment
Deep Tech
Travel Tech
Clean Tech
DEAL COUNT
SECTORS
ACCORDING TO DEAL COUNT
34
29
15
12
12
11
9
7
6
5
0 10 20 30 40
E-Commerce
Fintech
Enterprise Tech
Consumer services
Travel tech
Edtech
Media & Entertainment
Cleantech
Health Tech
Logistics
FUNDING ($B)
SECTORS
ACCORDING TO FUNDING
Note : this is the cumulative data from 2014 to 2023
Source: Crunchbase, Inc42 , Economic Times

12. Top 10 Cities
3386
2788
1811
353
348
342
140
89
79
38
0 1000 2000 3000 4000
Bangalore
Delhi-NCR
Mumbai
Pune
Chennai
Hyderabad
Ahmedabad
Jaipur
Kolkata
Kochi
Deal Counts
City
ACCORDING TO DEAL COUNT
68
44
19
4.6
3.7
2.7
1.2
0.8
0.2
0.1
0 20 40 60 80
Bangalore
Delhi-NCR
Mumbai
Pune
Chennai
Hyderabad
Jaipur
Ahmedabad
Kolkata
Chandigarh
Funding ($B)
City
ACCORDING TO FUNDING
Note : this is the cumulative data from 2014 to 2023
Source: Crunchbase, Inc42 , Economic Times

13. 03
Emerging Trends
of Startup Funding

14. Indian startups have raised around $143 billion since 2014, with 48% of these funds being
invested between 2021 - 2022.
376
983
1045 996
832 812
953
1584
1517
984
0
200
400
600
800
1000
1200
1400
1600
1800
$ 0B
$ 5B
$ 10B
$ 15B
$ 20B
$ 25B
$ 30B
$ 35B
$ 40B
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Deal
Counts
Funding($)
Year
Year On Year Funding With Deal Counts
funding Deal count
Source: Crunchbase, Fintracker, INC42

15. 4.57B
1.15B
3.56B
845.0M
3.90B
1.37B
2.60B
911.7M
1.70B
1.01B
2.80B
630.8M
870.0M
461.4M
1.00B
459.0M
963.0M
936.5M
1.20B
1.38B
1.10B
437.5M
1.10B
1.70B
2022 FUNDI NG 2023 FUNDI NG
MONTH ON MONTH FUNDING OF 2022 & 2023
January February March April May June July August September October November December
Source: Crunchbase, Fintracker, INC42

16. Year On Year M&A Deal Count
117
149
128 124
113
82
210
240
123
0
50
100
150
200
250
300
2015 2016 2017 2018 2019 2020 2021 2022 2023
M&A
Deal
Count
Year
Source: Fintracker, INC42

17. Sector Wise M&A Deal Count
Source: Fintracker, INC42

18. Comparison 2021 vs 2022 vs 2023
Total Deals 1625 1556 984
Total Fund Raised
$38B $25.2B $11.3B
M&A 210 240 123
ESOP Buybacks $440M $200M $802M
Unicorns 45 22 1
IPO 10 3 5
Source: TOI, Fintracker, INC42

19. Emerging Sectors
Sector Notable Startups
Health Tech
Renewable Energy
E-Commerce
Enterprise Tech
FinTech
EdTech
Agri Tech

20. Gaps In Startup
Funding
04

21. Steep Decline of funding for Women led Indian startups..
4.7B
2.4B
0.48B
262
238
118
0
50
100
150
200
250
300
0.0B
0.5B
1.0B
1.5B
2.0B
2.5B
3.0B
3.5B
4.0B
4.5B
5.0B
2021 2022 2023
Deal
Counts
Funding
($)
Year
Trend of Funding & Deal Count for Women Led Startups
Source: TOI, Mint, INC42

22. Abbreviation
● B – Billion
● M – Million
● M&A – Mergers and Acquisitions
● ESOP – Employee Stock Ownership Plan
Bibliography
● Crunchbase
● Inc42
● Times of India Finance
● Economic Times
● Mint
● Fintraker- Entraker
● Velocity Blog
● My HQ Digest
● Bian & Co.
● Startuptalky
● INVESTINDIA
● Forbes India
● Satista
● Startup India

23. Anshuman Nayak
2023011@risewpu.com