Funding for startups in the Delhi NCR region, recognized as the second-highest funded startup hub, experienced a notable decrease, hitting a seven-year low at $2.7 billion in 2023. According to the “Indian Tech Startup Funding Report 2023” by Inc42, there was a 51% year-on-year decline from $5.5 billion in 2022. This drop aligns with the overall downturn in funding across the Indian startup ecosystem, where the total funds raised decreased to slightly over $10 billion in 2023, reaching levels close to those observed in 2017.
In 2023, Delhi NCR witnessed six mega deals, including Lenskart’s $600 million two mega deals, and InsuranceDekho’s $246.5 million across three rounds, with a significant $150 million mega deal round. Other notable mega deals included DMI Finance ($400 million), GreyOrange ($135 million), and Stashfin ($100 million).
Six key sectors attracted substantial investor interest in Delhi NCR in 2023: ecommerce, fintech, enterprise tech, consumer services, edtech, and logistics. The ecommerce sector, with 63 deals, secured the highest funding at $761 million. Excluding the outlier deal with Lenskart, the average ticket size for funding in Delhi NCR startups was $3 million. Fintech startups led in terms of deals, with 37 and raised the most funds at $986 million. Other sectors that attracted attention were enterprise tech and healthtech, raising $122 million and $84 million, respectively.
Additionally, consumer services, edtech, and logistics startups secured 17, 15, and 15 deals, raising $44 million, $67 million, and $99 million, respectively. Overall, the funding landscape in Delhi NCR underwent a significant transformation in 2023, reflecting the broader trends in the Indian startup ecosystem.
