With funding starting to dry up due to global macro-economic factors, the startup ecosystem in India is bracing itself for a “long and bitter winter” and potential mass lay-offs in the next 12-18 months, particularly in sectors such as ed-tech and gaming that got a significant push during the pandemic, according to experts.
In the last quarter (April-June), start-up funding fell by about 40% to about 6-7 billion, Amit Nawka, Partner, Deals & Startups Leader, PwC India, noted, adding that prior to this, start-ups were seeing investments of about USD 10-11 billion per quarter.
“When we are talking to investors globally, there is limited visibility on when things will stabilise due to factors such as overall macro economic scenario, inflationary pressures, war and fall in the stock markets. While no one really knows, everyone is bracing themselves for a year of low funding. Given all this, start-ups are conserving cash,” he added.
