In November, venture capital funding for Indian businesses hits a six-year low.

In January 2024 and 2023, there were just three late-stage deals, the same as in January 2023. However, the amount of capital fell by 41% to $31 million. It was $52 million in January 2023.Anand Lunia, founding partner of IndiaQuotient, stated in a previous interview with Moneycontrol that there is a discernible decline in series A, B, and subsequent agreements, which has led to a greater concentration at the seed level.The total amount invested in Indian startups is now negative due to the sharp decline in late-stage capital. According to Venture Intelligence statistics, new-age IT businesses reported only $366 million in 53 agreements in January, a decrease of almost 64% from $1,027 million in 48 deals in December. Additionally, the month saw a sharp drop in comparison to the same period last year, down 54% from $792 million in 70 agreements.November marked a six-year low for venture capital (VC) funding to Indian businesses, and the protracted funding winter shows little signs of abating.According to data released by Venture Intelligence on December 1, Indian entrepreneurs closed just $223 million in 35 agreements in November, a decrease of almost 66 percent from $655 million in 52 deals the month before.

The only occasion when Indian entrepreneurs saw a decline in investment occurred in January 2017, when there were 43 deals totaling $207 million.Because of the holiday season and the approaching end of the year, November and December often receive less financing. VCs are focusing largely on finishing pending investments rather than taking on new ones. The numbers are declining because of this and investor concern, according to Mitesh Shah, founder of venture capital firm IPV, who spoke with Moneycontrol.Shah clarified that although investors are willing to assess companies, they are now more discerning and are not solely focused on profits. He stated, "People are now considering all of their options before committing to anything." Additionally, the month saw a sharp drop in comparison to November 2022 of $1.02 billion in 62 trades, a 78.2 percent year-over-year fall.Startups changing course The effect is noticeable in the total amount of funds for 2023. The amount of capital received by Indian companies up to November was $7.05 billion, a 71% decrease from $24.36 billion in 2022.