Funding in startups dropped by 17 per cent to USD 6 billion in April-June: Nasscom

New Delhi: Funding in startups dropped by 17 per cent on quarter-on-quarter basis to USD 6 billion (about Rs 47,800 crore) in the April-June period, industry body Nasscom has said.

According to the Nasscom quarterly investment factbook on tech startups compiled in association with PGA Labs, deals also dropped by about 17 per cent due to dampened market sentiments but despite reduction in deal value, funding in growth stage continued to increase.

The report said, "16 large ticket size deals helped generate a total funding of USD 6 billion in the second quarter (Q2) of calendar year (CY) 2022. Startup ecosystem witnessed the birth of 4 new unicorns in Q2 CY22, taking the tally to 20 unicorns in the first half." Around 26 per cent of the total funding went to fintech segment.

"Large ticket deals like CRED and Dailyhunt resulted in overall increase in total investments in fintech and media and entertainment sectors, contributing around 45 per cent of total funding in Q2, CY22," the report said.

Fifty-two per cent funding was in the ticket size of USD 100 million or above with Dailyhunt and ShareChat raising big rounds.

Growth stage deals contributed 58 per cent of the total funding during the reported quarter as the investors backed startups have already reached a certain scale, the report said.