Startups witness 27% decline in investments in April FY22

Elevation Capital, an early-stage venture capital firm raised its biggest ever eighth India-dedicated fund at US$ 670 million.

May 19, 2022

The investments that were made by venture capital funds into emerging startups have halved to US$1.6 billion across 82 deals during April

International funds that are sitting on large amounts of dry powder for India to emerge as a leading market capital along with being one of the large economies and a robust growth way ahead.

Verse Innovations, raised US$805 million and that was the highest deal for the month, and the second-largest deal in the media and the entertainment industry.

As compared to US$ 569 million that was raised a year ago by eight funds, April recorded a total fundraise of US$ 1.5 billion across sixteen funds.

Startups in India are facing a decline by 27% in investments made by private equity and venture capital funds during April FY22 at US$5.5 billion, according to a report released this week. On the other hand, the investments received in the preceding month of March FY22 are 11% higher than US$5 billion as compared to March FY22, stated an industry report by IVCA and EY, a consultancy. 

The investments that were made by venture capital funds into emerging startups have halved to US$1.6 billion across 82 deals during April which also resulted in the decline of the overall number. 

Vivek Soni, the consultancy partner also pointed out that due to the rate tightening by the US Feds, the liquidity will see a downward trend however, International funds that are sitting on large amounts of dry powder for India to emerge as a leading market capital along with the country being one of the large economies and a robust growth way ahead. 

Verse Innovations fundraise US$ 805 million was the highest deal for the month and the second-largest deal in the media and the entertainment industry, as per the report. The prevailing volatility in the capital markets is expected to further lead to pushback for IPOs and reduce valuations. 

As compared to US$ 569 million that was raised a year ago by eight funds, April recorded a total fundraising of US$ 1.5 billion across 16 funds. Elevation Capital, an early-stage venture capital firm raised its biggest ever eighth India-dedicated fund at US$ 670 million. 

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