Funding Woes Of Start-Ups

Marked by funding frenzy and a record number of unicorns, 2021 was a dream run for Indian start-ups. But, rising geo-political tensions and volatile domestic market could play spoilsport this year.

- Asmita Dey

More than $30 billion worth of funding, a record number of 45 unicorns and a clutch of sizeable IPOs — 2021 has been nothing less than a dream run for Indian start-ups. The funding frenzy on the start-up street came on the back of a ‘digital overdrive’. Nudged by the pandemic that confined millions to their homes, consumers’ appetite for digital services shot up, boosting start-up subscriptions, which eventually translated into investors infusing billions of dollars into new-age companies at high valuations.

2022 seemed to be going well too. Funding in the first two months surpassed the year-ago period. Start-ups raised around $7.75 billion during January-February this year, compared with $2.63 billion in the same period last year, according to data sourced from market research firm Venture Intelligence. Also, the unicorn count for the year has already touched over 10.