Volatility in the markets and shrinking startup valuations resulted in fewer mega deals (funding rounds worth $100 million and above) in 2022. India sealed 61 mega deals worth $12 billion, accounting for about 47% of the total funding value in the year. In comparison, 118 mega deals worth at least $32 billion were announced last year.
The pain at the growth stage was evident during the year as companies were not willing to negotiate deals at lower valuations.
The situation has changed considerably in the last few quarters and companies are being forced to revisit their valuations. Meanwhile, investors have also turned cautious about spending amid global market uncertainties and are shying away from clinching big-ticket deals. This trend is likely to continue in 2023, according to market watchers.
While VerSe Innovation raised the single largest round of $805 million this year, edtech giant Byju’s raised a total of $1.05 billion across two mega rounds. Food ordering and delivery platform Swiggy followed with $ 700 million funding led by US asset manager Invesco.
