Even with the economy slowing down these past few weeks, Indian based start-ups have collectively raised over $10 billion USD in funding during the first quarter of this year. This number is almost double than that of the previous year when new businesses managed to only rake in $5.7 billion USD.
This record-breaking announcement comes during trying times the world is currently experiencing which has caused a slowdown of economic operations worldwide. With the Russia and Ukraine war, oil prices that have never been seen before, the slump in the value of American tech shares, and so on have made investors and venture capitalists a bit more conservative and a bit more careful when it comes to funding start-ups.
Even with all these uncertainties plaguing the world currently, Indian businessmen were still able to achieve the impossible and secure massive funding for the businesses.
According to many reports, the founder of investing conglomerate, Softbank, Masayoshi Son advised his people to hit the brakes on investing in tech firms due to its slump in stocks. This is during a time when the company is trying to raise money and it is assessing as to which assets can be liquidated.
The CEO of Softbank, Rajeev Mishra also stated that the company plans to scale down on private financing due to the current uncertain geopolitical situation.
India, somehow beat the odds and secured funds worth $5.8 billion USD as their final stage deals this quarter.
It is no surprise that most of the funding went to start-ups based in Bangalore as the companies collectively secured around $4.6 billion USD which consisted of over 120 separate deals.
Experts have also said that many investors are more likely to target companies whose assets have higher quality and go through with investments with slowed down decisions. Over the top valuations are also slowly starting to put off many potential venture capitalists and angel investors.
Many entrepreneurs understand this and are tweaking their approach and business model and strategies accordingly. Many investors are now more vested in the true health of business and where it actually stands rather than where it potentially could stand down the line. Many companies post big numbers on their reports but when you take a small peer behind those curtains, the company needs to be healthy and well and that is what is paramount to potential funders.
The record breaking funding places India at a good place to be tech and entrepreneurial powerhouse and only time will tell if India achieves it.
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