The startup funding winter is well and truly here. According to a recent PwC India research report, Indian startups raised $3.8 billion in the first half of 2023 (January to June), interpreted as a massive drop off of 36 percent compared to the fundraising in H1 of 2022. The report also points out this is the lowest six-month funding in the last four years. However, Fintech, SAAS, and D2C remain the most funded sectors in H12023.

Commenting on the occasion, Amit Nawka, Partner - Deals & India Startups Leader, PwC India, shared some warm words for startup entrepreneurs. He says, “A funding winter is just a season in a startup’s journey. There is a slowdown in startup funding despite significant untapped capital reserves held by venture capitalists (VCs). Active VC firms in India have secured new funds in the past year, and we can expect the pace of investments to pick up in the next few months."

However, it is widely viewed that the investment scenario in the country is going to change soon. The UAE announcing a $50 billion investment is a great omen. In 2022, India received 811 Industrial Investment Proposals, which were valued at $ 42.78 billion. Various factors have made India more appealing for FDI in the last few years. India improved its World Competitive Index 2022 rank by six places and came 37th, up from 43rd in 2021. India also entered the top 50 most innovative countries list and got 40th place in the Global Innovation Index 2022. These factors have increased FDI investments in India.