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2023 saw the lowest number of startups being founded in a decade.

OutlookIndiaOutlookIndia · 9m
2023 saw the lowest number of startups being founded in a decade.

In 2023, India's startup ecosystem faced challenges including significant valuation markdowns for unicorns and the closure of over 15 startups. Funding winter, cautious investors, and a focus on profitability were cited as reasons for the decline. The number of new tech startups founded in 2023 was the lowest in a decade, and funding activity reached its lowest point in seven years. Experts suggested that the decline in startups may be influenced by factors beyond funding, including market saturation and cost disparities. Tax concerns and global investors looking away from Indian startups also played a role. However, despite the challenges, the cumulative funding for tech startups in India reached $8.4 billion, and investors are hopeful for a promising 2024 with anticipated IPOs.

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