Downturn in Indian Tech: Lowest Funding in Half a Decade, Produces Merely 2 Unicorns in 2023

Compared to the last 5 years, the Indian tech startup ecosystem has received the least funding in 2023, due to which India’s global ranking has dropped from fourth to fifth place.

Compared to last year, this year 2023 has seen a decline of 72% in the total funding amount. This amount was a total of $7 billion in 2023 whereas last year it was $25 billion.

According to the report of Tracxn (Global Market Intelligence Platform), only 2 unicorns have been formed this year, Incred and Zepto, whereas last year this no. was 23. And this year a total of 119 startups were acquired whereas last year there were 187 acquisitions.

Due to this funding slowdown, India comes at fifth place in the global ranking of highest funded geography.

“While the funding slowdown in 2023 presents challenges for the Indian tech startup ecosystem, we remain optimistic about the future. With favourable government policies and a fast-growing economy, we believe India is well-positioned for success in the years to come,”

said Neha Singh, co-founder, Tracxn.


The FinTech startup ecosystem has seen decent funding, this year the amount was $2.1 billion but last year the number was $5.8 billion.

PhonePe, Insurancedekho, Kreditbee, and Perfios have been top-funded in this sector this year.

PhonePe has been top funded in the Fintech sector, having raised $750 million in four Series D rounds, which is 38% of the total Fintech funding.


A drop of 67% has been seen in the retail sector as compared to last year. This sector has received a total funding of $1.9 billion this year.

Lenskart has been the top-funded company in the retail sector this year, having raised a total of $ 600 million in two Series J rounds.

Environment Tech

Despite the funding slowdown, new innovative startups have been formed in the environment sector, which attracted the attention of investors and with the same, total funding of $1.2 billion was raised in this sector.

Space Tech

The space tech sector has also attracted the attention of investors this year and it has received a total funding of $122 million, which means that space tech has received 6% more funding than last year.

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