Despite facing a funding winter, Indian startups received a substantial injection of $8.4 billion in 2023

The funding landscape in India experienced a notable shift in 2020 and 2021, marking a period of significant investment. According to the latest report from Tracxn, India has established itself as a major global hub for innovation and entrepreneurship, with the number of tech companies reaching 122,000, including over 16,000 new additions in 2020.

The funding scenario in 2023 demonstrated resilience in the face of market uncertainties, with a total of $8.4 billion invested in India by both Indian and global investors, as revealed by Tracxn data. The report highlights India's remarkable decade of growth in tech startups, emphasizing the unprecedented surge in the creation and funding of startups.

Despite the recent funding challenges, the number of investors has surged from 2,450 in 2014 to 16,300 in 2021, showcasing the expanding interest in India's startup ecosystem. The report attributes the substantial growth of the Indian startup landscape to factors such as a tech-savvy young population, an expanding middle class, and a favorable regulatory environment.

Key sectors that received substantial funding from 2014 to 2023 include retail, enterprise applications, fintech, transportation and logistics tech, food and agriculture tech, auto tech, travel and hospitality tech, and ed-tech. Increased internet penetration, digitization, and government initiatives are cited as contributing factors to this growth.

The report also highlights the rising investment in deep tech, with a total funding of $6.73 billion over the years, reaching $2.1 billion in 2022 alone. Emerging sectors like space tech, AI, and EVs have expanded the startup landscape, with deep tech receiving significant funding. Job creation by startups reached 1 million by 2023, with Bengaluru leading the startup hub, securing a total funding of $70.4 billion in a decade, followed by Delhi-NCR and Mumbai.

The report notes the creation of 111 unicorns in India, with 355 promising startups expected to join their ranks soon. The rise of Soonicorns began in 2019, with 2022 witnessing the creation of 96 Soonicorns, while Minicorns experienced substantial growth, reaching its peak in 2022 with the emergence of 264 Minicorns.

Women-led startups also experienced significant growth, with total funding reaching $1.1 billion in 2023, compared to $0.456 billion in 2014. The report concludes by stating that India's economic growth is intricately linked to the success of its startup ecosystem.