As the pandemic-induced euphoria of 2021 tempered amid a global downturn and geopolitical tensions in 2022, two of Indian startups’ biggest backers — New York-based hedge fund Tiger Global and Japanese investment firm SoftBank — significantly cut back on their investments in the country. And the scenario is unlikely to change in the near term.
Ashish Kumar, co-founder of venture capital firm Fundamentum Partnership, said the first half of 2023 will be very similar to the latter half of 2022 when it comes to the fundraising environment. Large cheques may be hard to come by, and this will mostly impact companies that are not able to control the burn, he added.