The Indian technology start-ups raised $885 million in August, 20 per cent less than that of July, according to a report by Tracxn. Tech start-ups recorded 102 rounds of funding, with 9 acquisitions on board.
As per the report, the funding rounds fell by 8 per cent, and acquisitions dropped by 18 per cent in August compared to July. Bangalore led the funding round, followed by Mumbai and Delhi. According to a report by Inc42, while June witnessed the highest start-up funding this year, July registered only 127 start-ups mergers and acquisitions. Moreover, the Indian start-ups witnessed funding of $1.1 billion in August, as per the Inc42 report.
The development comes at a time when the Indian start-up ecosystem has been witnessing a funding winter over the past few months. The new-age start-ups including several unicorns such as Unacademy and Vedantu have resorted to massive layoffs and pay cuts amidst the funding crunch. The funding winter is predicted to continue for next 12 to 18 months.
In the third quarter of FY21, tech start-ups witnessed funding worth $14.8 billion.