In total, more than 3,000 employees have been impacted so far while a few companies (such as Byju’s) are in the process of mass firings. In other words, startups registered layoffs almost every day during the opening month. Data compiled by Fintrackr (sourced from various media reports such as Inc42, Economic Times, Moneycontrol, and The Morning Context) shows that around 27 startups went through layoffs in January. Like the second half of 2022, layoffs continue to hamper the growth story of Indian startups. It was the fourth acquisition for the company since January 2022. Merchant commerce platform Pine Labs acquired a proprietary enterprise platform from Bengaluru-based Saluto Wellness Private Limited at an undisclosed amount. Roadside assistance startup ReadyAssist, which has raised around $6 million so far, acquired Vadodara-based SpeedForce for $10 million worth cash and stock deal. Gurugram-based Chumbak had raised more than $30 million before getting acquired. The acquisition of Chumbak by e-commerce roll up company Goat Brand Labs grabbed headlines. Indian startups saw 18 mergers and acquisitions across segments in January. Mumbai, Pune and Hyderabad recorded 10, 6, and 5 deals respectively. It’s worth mentioning that out of 5 edtech deals, Upsurge and Moat School are gaming-focused edtech platforms, Virohan is paramedic-focused edtech company and LEAD received funding in debt.Ĭity wise, Bengaluru remained on the hot seat with 60 deals (60% of overall deals in January) while Delhi NCR saw 15 deals. Healthtech was in the third spot with 13 deals followed by SaaS (8 deals), HR tech (6 deals), edtech (5 deals), and agritech (4 deals) respectively. However, fintech continued to dominate with $587 million (approx 50%) in total funding. Segment wise, e-commerce (including D2C startups) saw more deals than any other. SaaS startup Rigi, logistics company Locad, healthtech company Mumbai Oncocare Centre, and fintech platform neoGrowth also managed to raise over $10 million in their new fundraise. In the top 10 early stage deals, QR code-based customer engagement platform Beconstac, fuel delivery startup FuelBuddy, rural commerce startup VilCart and edtech startup Toddle dominate the table. InsuranceDekho, which raised $36.5 million in its ongoing round, also made it to the list. Sequoia Capital-backed Wakefit, Log9 Materials, Sarvagram, Mad Street Den, Blue Tokai, and SirionLabs were included in the top 10 growth stage startups. Entrackr has prepared the top 10 deals in both early and growth stages. In fact, the third largest deal was worth $50 million by Enzene Bioscience. While taking year-on-year data of January for the past three years we found that 2021 saw $808 million ($0.8 billion) in funding which climbed to $4.57 billion in January 2022 and then slipped to $1.19 billion in 2023, showcasing the bumper year than 2022 was when it came to startup funding.Īpart from PhonePe and KreditBee, no other startups managed to touch the $100 million mark in January. Since then, the numbers have hovered around the $1 billion mark. In Entrackr ’s yearly report, we saw that startups saw their first downfall in July 2022 when the funding fell below the $1 billion mark for the first time that year. Notably, the average deal size for early stage startups stood at around $4 million. Early stage startups received $265 million across 67 deals while 12 startups did not disclose their transaction details. It came on the back of PhonePe’s $350 million and KreditBee’s $120 million round which accounted for 40% of the overall financing. Growth stage startups saw 22 deals worth $926 million. ![]() ![]() Even as a funding winter continues, and tech companies are laying off a part of their workforce, Indian startups managed to raise over $1 billion in funding during January - something that has become a new normal of sorts for the past six months.Īs per data compiled by Fintrackr, more than 100 startups mopped up nearly $1.2 billion in funding in the first month of 2023.
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