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Tech Start-ups: Quarterly Investment Factbook – Deal Analysis (Q1 CY23)

Tech Start-ups: Quarterly Investment Factbook is nasscom- 1Lattice quarterly funding update on Tech start-ups highlighting key trends and facts about the Indian tech start-up ecosystem during the quarter. It covers funding details by volume, value, stage, and other metrics. Includes a separate section on five key verticals- HealthTech, FoodTech, RetailTech, EnterpriseTech and FinTech that highlights key trends and themes reflecting the different strategies adopted by ecosystem players.

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Key Findings

01

  • India tech start-ups funding at US$ 3.1B in Q1 CY23, up 7% Q-o-Q
  • 2nd successive quarter with no unicorns
  • Global Q1 CY23 funding totaled US$76B — 2% lower Q-o-Q, 50% lower Y-o-Y
02

  • Deal volumes maintain growth momentum: 2.3% up Q-o-Q, 4.5% up Y-o-Y
  • Late-stage deals emerge as key drivers; their share in total deal value increased by >60% from the previous quarter
  • Average deal value in this quarter to reach US$ 13.8M, up by 20% Q-o-Q
03

  • FinTech and RetailTech attracted ~58% of the total funding, with ~42% deals in growth stage
  • >1/3rd (US$ 1.1B) of Q1 CY23 funding went to FinTech while RetailTech funding soars with a rise of >60% from the previous quarter
  • Payments accounted for >60% of total FinTech funding
04

  • Funding of B2C tech start-ups in Q1 CY23 has increased to ~72% from ~48% in Q4 CY22
  • Over half of the funding in Q1 CY23 was from deals with a ticket size of >US$ 100 million
  • Series A & Series D deals account for ~47% of deal value

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