India’s total tally of active tech start-ups to 25,000-27,000, according to report and continues to be the third largest tech startup ecosystem globally after US and China.

The country also added the second highest number of unicorns in the world, with over 23 added in the calendrer year 2022.

The total funding for the calendrer year 2022 stood at $18.2 billion which is 30 per Cent lower than 2021, however, higher than last 4-year average in value terms.

The report stated that almost 1400 unique start-ups received funding in 2022, 18% higher than in 2021. Amongst these, 47 per cent of start-ups raised their first round in 2022.

Despite the slowdown, 2022 emerged as the year that witnessed the highest seed and early-stage investments between 2019 and 2022. Early-stage and seed-stage investments grew 25-35 per cent over 2021.

 The study reveals that both early-stage ($5.9 Bn in CY2022) and seed-stage ($1.2 Bn in CY2022) investments grew between 25-35 per cent over 2021.

With slowdown in late-stage, 66 per cent of investments were raised by non-unicorns.

Late-stage investments bore the brunt with a decline of 41 per cent in deal sizes greater than $100 million, due to considerable correction in the global public markets.

“There has been a marked expansion in the industries targeted by Indian start-ups and an improvement in the quality of use cases being solved. Most sectors have raised investments greater than they did in 2019, with BFSI, Retail and Retail Tech, Enterprise Tech, and EdTech remaining the most preferred sectors,” the report stated.

“Despite the current downturns, opportunities abound for innovative companies that are leveraging emerging technologies to create actionable impact while prioritising business fundamentals over growth,” said Debjani Ghosh, President, Nasscom.