According to a report, the number of venture capital deals in the Indian startup ecosystem increased by 7.5 per cent year on year during the January-October 2022 period, while the total value of these deals decreased by 29.8% year on year.

According to a GlobalData analysis, Indian startups raised $19.3 billion in venture capital (VC) across 1,456 deals from January to October 2022, compared to $27.5 billion across 1,355 deals from January to October 2021.

According to the report, VC firms have shifted to a more cautious approach to startups and their business models due to global macroeconomic factors such as rising interest rates and public market volatility this year.

Despite being lower than last year, funding values this year are still higher than in 2019-2020. In 2019, Indian startups raised $10.2 billion across 883 transactions, and in 2020, they raised $6.1 billion across 922 transactions.

Meanwhile, deal value increased month over month in October. According to GlobalData, funds raised in October increased by 25.5 per cent to $898.3 million, despite a 33.9 per cent drop in volume compared to September.

This was aided significantly by the $250 million round of edtech decacorn Byju.

In July of this year, when funding winter knocked on the ecosystem’s doors, total VC investment fell below $1 billion for the first time.

The report is based on GlobalData’s Financial Deals Database, which was compiled using proprietary databases, primary and secondary research, and in-house analysis.

According to Tracxn’s quarterly report last month, funding raised by Indian startups from VC and private equity investors dropped to $3 billion between July and September across 333 deals, down from about $7 billion across 520 deals in April-June. The funding value has dropped dramatically from around $11 billion raised by startups across 688 deals in January-March.

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