Bain - India Venture Capital Report 2023

Bain's India Venture Capital Report 2023 notes a global slowdown in venture capital (VC) investments following the macroeconomic uncertainty and recessionary fears of 2022. This slowdown was caused by several factors, including tightening of monetary policy, geopolitical tensions, trade sanctions, and irregularities in tech governance. Despite this, India remained resilient, with structural enablers such as consumption potential, inclusive growth, fiscal and monetary policy discipline, and economic activity shifting away from China driving a positive economic outlook. The decline in funding in India mostly occurred in the second half of 2022 due to global macro headwinds intensifying, but India accounted for ~5% of global VC funding in line with 2021. The report shows that India-focused VC investments reached 20% within Asia-Pacific for the first time. Additionally, India added 23 unicorns in 2022, surpassing China's 11 unicorns, and marked its 100th unicorn in May 2022 with Open Technologies. Overall, the report highlights the challenges faced by VC investments globally and how India's unique strengths helped it stay resilient.