FILE PHOTO: Indian flag and the word "Startups" are seen in this illustration taken, March 20, 2024. REUTERS/Dado Ruvic/Illustration/FILE PHOTOInvestors, once eager to pump in billions of dollars in promising Indian tech ventures, are now going slow and cutting smaller cheques. They've been burnt by ignominious falls from grace - and valuations - for once-marquee young firms or market debutants of recent years such as digital payments company Paytm.
In January and February, India's startups raised about $900 million - a pace that signals another slow year after a six-year low of just $8 billion in 2023, Venture Intelligence data shows. India's 10 biggest venture capital firms have over the past decade always embarked on bigger funds than their last one, a Reuters analysis shows.Less startup funding can have a broader economic impact. In the last eight years, startups generated 20-25 per cent of India's new jobs and 10-15 per cent of its economic growth, an Indian trade body and McKinsey said in a report this month.
In some cases, valuations have plunged even without a major crisis. Vanguard, an investor in Ola Cabs, slashed the ride-hailing firm's valuation to $1.9 billion, a drop of 74 per cent from 2021, although it did not give a reason.
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