in India in 2023 ‘Deeptech’ startups saw a significant growth. According to a report, 480 new ventures emerged, making it the third largest pool globally. However, the report by technology industry body NASSCOM and global consultancy firm Zinnov has highlighted a worrying trend of declining funding, which is a major challenge for these startups. “India currently has over 3,600 deeptech startups, of which 480 were founded last year alone. This number is almost twice the number of deeptech startups founded in 2022,” the report said.
Obstacles in the way of progress
However, India’s deeptech prospects are hampered by a lack of funding. “On average, Indian deeptech startups receive a fraction of the investment at each stage compared to startups in some other major deeptech ecosystems. This lack of funding limits the ability of some promising deeptech startups to scale up. This hampers India’s ability to compete in the global deeptech race,” it said.
Raised nearly $10 billion
Indian deeptech startups have raised nearly $10 billion in the last five years. According to the report, a total of $850 million was raised in 2023 alone. This is 77 percent less than the $3.7 billion raised in 2022. Meanwhile, the number of deals in 2023 decreased by 25 percent compared to 2022.
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