🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
✕
Login
Home
News
Messages
Startup Showcase
Trackers
Premium
Premium Content
Jobs
Notifications
Settings
Try our Valuation Calculator →
Log In
News on Medial
Once burnt, investors curb enthusiasm for Indian startups
Economic Times
·
1y ago
Medial
Investors are becoming more cautious about investing in Indian startups due to past failures and decreased profitability. Funding for Indian startups dropped by two-thirds last year, much steeper than the decline seen in the US and China. Investors are now more interested in stable brick-and-mortar businesses and potential profitability. Startups play a significant role in generating new jobs and economic growth in India, so the decline in funding could have a broader impact on the economy. However, there are still some signs of optimism, such as SoftBank considering investing up to $300 million in India this year.
View Source
Related News
India’s startups will no longer prefer price perfection
Business Today
·
1y ago
Medial
The plummeting valuations of Paytm and Byju's, once highly valued Indian startups, are expected to have a negative impact on the next round of fundraising for fledgling companies in the country. Paytm, once valued at nearly $19 billion, is now worth just $3 billion, while Byju's, previously pegged at $22 billion, recently raised funds at a valuation 99% lower. Both companies have faced issues including regulatory non-compliance and aggressive expansion, causing major investors to cut back their shareholdings. This cautionary tale is likely to make investors more cautious in supporting future Indian startups.
View Source
Investors jittery as some Indian startups' fall from grace dwindles faith
VCCircle
·
1y ago
Medial
Investor confidence in Indian startups is waning due to high-profile failures and declining valuations. Once enthusiastic about investing in promising Indian tech ventures, investors are now cutting back and investing smaller amounts. Many investors are adopting a more cautious approach, seeking potential profitability and stability in brick-and-mortar businesses. The funding for Indian startups dropped significantly last year, with investors attributing the decline to the struggles of companies like Paytm, Byju's, and Ola Cabs. This drop in funding could have a broader economic impact, as startups have been significant contributors to job creation and economic growth in India.
View Source
Investors jittery as some Indian startups' fall from grace dwindles faith
VCCircle
·
1y ago
Medial
Investors are becoming cautious and cutting back funding for Indian startups after several high-profile failures. Once eager to invest billions in Indian tech ventures, investors have been burned by falls in valuations such as those seen by digital payments firm Paytm. India's startups raised just $900 million in the first two months of 2023, following a six-year low of $8 billion in 2022. This drop in investment could have broader economic impacts, as startups have generated up to 25% of new jobs and 15% of economic growth in India in recent years.
View Source
40 Indian startups slated to go public or be IPO-ready by FY25: Redseer
Economic Times
·
2y ago
Medial
According to RedSeer, around 40 Indian startups are projected to go public or be IPO-ready by fiscal year 2025. This trend reflects a growing interest in IPOs among startups, driven by favorable market conditions and investor enthusiasm. The significant number of startups preparing for IPOs signifies the maturation of India's startup ecosystem and its evolution towards broader capital markets engagement.
View Source
Once burnt, investors curb enthusiasm for India's startups
Reuters
·
1y ago
Medial
Investors in Indian startups are becoming more cautious and reducing funding in the sector. They have been burned by the sharp declines in valuations of once-promising companies such as Paytm and Byju. This year, Indian startups raised only around $900 million in January and February, indicating another slow year following the six-year low of $8 billion in 2023. Investors are now more interested in stable brick-and-mortar businesses and potential profitability, rather than tech companies. The drop in startup funding has broader economic implications, as startups have been significant contributors to job creation and economic growth in India.
View Source
Despite global frenzy, investor enthusiasm in China's AI startups wanes
Startup News FYI
·
1y ago
Medial
Investor enthusiasm for Chinese AI startups is waning despite the global frenzy around artificial intelligence. In 2023, there was a decline in investments, with a 38% drop in funding for AI firms in China. The total amount raised by Chinese AI startups decreased by 70%. The decline is attributed to factors such as geopolitical tensions, U.S.-China decoupling, and concerns over U.S. regulatory scrutiny. The capital-intensive nature of AI startups and the scarcity of AI chips also contribute to the funding slowdown. Some startups are exploring niche industry applications or turning to foreign investors for financing.
View Source
Zombie unicorns - Indian startups go from feast to famine
Money Control
·
1y ago
Medial
Meesho, a prominent Indian e-commerce platform, saw its valuation surge to $5 billion in 2021, fueled by investments from major players like SoftBank and Fidelity. However, the once-thriving Indian tech startup landscape is now experiencing a slowdown. Concerns about corporate governance are looming large, causing investors to become more cautious in a volatile global market. Anand Lunia of venture capital firm India Quotient commented on the situation, stating that he hasn't witnessed a slowdown like this in the past five to six years, and it's expected to be challenging. He anticipates the rise of "zombie unicorns," startups that achieved unicorn status but lack viable business models and have halted hiring. Meesho is currently seeking to secure debt and reduce expenses after struggling to raise fresh funds of $1 billion. Investors have become wary of its monthly cash burn of $45 million and fierce competition. The challenges faced by Meesho are indicative of the difficulties ahead for many Indian startups. Plummeting Indian tech stocks are causing concern, and investors are intensifying their scrutiny of startups during due diligence, which is leading to funding delays. There are also worries that valuations in India are excessively high, even when startups are primarily driven by discounts and face bleak revenue prospects. This potential funding crunch could significantly impact the growth of Indian startups and lead to job cuts. To prepare for this uncertain future, companies are advised to maintain a sufficient cash reserve for at least 18 months and consider cost-cutting measures, including potential layoffs. The recent struggles faced by startups like BharatPe and Vedantu highlight the challenges in maintaining growth and profitability in the current environment. Investors are becoming more cautious and are emphasizing the importance of a clear path to profitability for startups. The message is clear: "Prepare for the worst and hope for the best."
View Source
Google vs Indian apps: Payments industry seeks legal changes against Google’s app billing policy
Economic Times
·
1y ago
Medial
The Payments Council of India is urging the Indian government to intervene and amend laws to prevent Google's monopolistic policies. The council wants to protect Indian startups and regulated payment aggregators from Google's abusive practices. South Korea and the European Union have already taken steps to safeguard their local startups and curb Big Tech's monopoly. Google's recent removal of apps from the Play Store due to alleged payment policy violations has raised concerns in the digital payment industry. Many startups are removing payment gateways from their Android apps to avoid paying fees to Google, potentially impacting transaction volumes.
View Source
KickSky, SanchiConnect, Riceberg VC Team Up for Spacetech Boost
StartupTalky
·
1m ago
Medial
SanchiConnect has partnered with KickSky Space Lab, supported by Riceberg Ventures, to boost early-stage spacetech startups in India. This strategic collaboration aims to propel companies beyond the proof-of-concept stage by providing them with global market access and funding opportunities. Dr. Sunil Shekhawat from SanchiConnect expressed enthusiasm about advancing India's spacetech ecosystem. This initiative complements existing public support and seeks to create a global spacetech community for founders, investors, and industry experts.
View Source
Mass Layoffs Blotted Startup’s Employer Profile In 2023. Will 2024 Be Any Better?
Inc42
·
1y ago
Medial
The Indian startup ecosystem has been hit hard by mass layoffs, with over 35,000 people losing their jobs in 2023. This has created uncertainty and affected the employer brand of startups, causing potential employees to question the stability of a career in the industry. However, some founders believe that Employee Stock Ownership Plans (ESOPs) could help bring back the workforce's enthusiasm. Despite the challenges, there is optimism for growth and expansion in the coming years, with many startups looking to hire and improve their financial conditions.
View Source
Trackers
Active Indian VC’s
OG Capital
Email
With a hands-on approach, OG Capital aims to invest in over 20 promising...
Accel Partners
Email
Early and growth-stage investments in disruptive technology companies with...
Blume
Email
Early-stage venture capital firm investing in technology startups in India. Focus on...
Access All Trackers
Startup Showcase Winners
June 2025
Buddy
Helping your parents when you are miles away
BiteStop
The Pit Stop Your Cravings Deserve
Bloomer
The next generation E-commerce platform
Enter Ongoing Startup Showcase
Top Users
Trending News on Medial
Download the medial app to read full posts, comements and news.
Go to Medial App
Not Now
Know everything that’s happening in the startup ecosystem, first.
Enable Notifications?
No, thanks
Count me in
