Late-stage funding drops to lowest level since 2017 as negotiations drag out

Towards the end of the last financial year, excitement returned to the startup deal street. Reports surfaced about new investments, funding rounds were getting closed, and marquee global investors were making comebacks, breathing fresh life into India’s startup ecosystem after nearly two years of stagnation.

Not only were smaller deals happening, but mid- and growth-stage deals exceeding $20 million were also being announced. More importantly, news of large startups seeking to raise $100 million rounds appeared almost every other day.

The CapTable reported at least 10 major technology companies—including Innovaccer, HealthKart, Lenskart, and PocketFM—were in the market to raise funding rounds worth upwards of $100 million. To be sure, many of these companies had been quietly seeking funding for well over a year, even if not actively.