As the Indian startup ecosystem grows bigger and competition gets more intense, smaller players are increasingly finding it difficult to attract fresh investments and keep their boats afloat in rough waters. As a result, they are being swallowed by the bigger fishes.
To add some data-led perspective, acquisitions by Indian startups more than doubled to 108 in the first half of this year compared with 52 in the corresponding period of 2021. The total amount spent on the acquisitions, however, dropped 14% to $1.72 billion in Jan-June 2022 from over $2 billion in the year-ago period, according to data available with research firm Venture Intelligence.