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Ecommerce startup funding tanks 32% in 2023, D2C leads the show

Inc42Inc42 · 9m
Ecommerce startup funding tanks 32% in 2023, D2C leads the show

According to Inc42's Indian Startup Funding Report 2023, Indian ecommerce startups raised $2.6 billion in funding during the year, which is down 32% from the previous year. The funding decline was accompanied by a decrease in the number of deals, with the deal count dropping by 33.6%. However, despite this decline, ecommerce remained the top-funded sector in terms of the number of deals. Direct-to-consumer (D2C) brands played a significant role in the funding landscape, securing over half of the total ecommerce funding. Seed and growth stage startups were the most impacted, experiencing significant declines in funding. The report also highlighted the prospects of the D2C market and the success of D2C brands in India.

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