NASSCOM data claims that tech startups have raised $15.7 billion in three-quarters of CY22
Despite facing hardships in the calendar year (CY) 2022, Indian tech start-ups are slowly turning around the game. The National Association of Software and Service Companies (NASSCOM) data claims that tech startups have raised $15.7 billion in the three quarters of CY22.
Fintech companies were the game changers in terms of bagging the maximum number of investments. As per the data, this category alone bagged 37 per cent of the total deal value in this time period.
The other sectors like health and ed-tech also contributed well in terms of grabbing financial deals.
This year, Indian start-ups did struggle with funds.
An Al-Jazeera report claimed that in May 2022, Indian start-ups raised $1.7 billion, witnessing a massive drop of 34 per cent from the previous month of April. This could be put fown to a rise in inflation and increasing tussle in the geopolitical sector, which affected their ability to raise investments.
The edtech sector also witnessed slowing down of business, which forced them to trim their costs. Start-ups like Vedantu, Unacademy, and Byju's reduced their employee bandwidth.
For instance, Unacademy’s Prepladder team laid off 150 employees while Vedantu, another edtech start-up, handed out pink slips to 100 employees in recent times.
Byju's plans to “rationalise” employees in a phased manner in the coming months, which loosely means terminating 2,500 employees from its 50,000-strong bandwidth.
Amid these difficulties, the NASSCOM data points out that volumes of deals grew 78 per cent to 215 compared to 121 in the previous year. The country also added 26 unicorns in the entire year.