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Indian edtech funding plummets by 48% in 2023 in comparison with final yr

NEW DELHI: Whole funding within the Indian edtech sector fell 48% this yr in comparison with the identical interval in 2022, and 50% in comparison with the identical interval in 2021, in keeping with a report launched on Monday. This yr (until August 7), there was just one fundraising spherical value greater than $100 million.
In response to Tracxn, a number one SaaS-based market intelligence platform, the vast majority of funding into home edtech companies has been obtained within the second quarter, at $713 million, accounting for 73.4 p.c of whole capital raised this yr.
The edtech market has been dealing with challenges attributed to reducing demand for on-line schooling, ongoing funding constraints, rising rates of interest geared toward controlling inflation, and financial uncertainties.
The variety of funding rounds in 2023 skilled a drop of 77 per cent and 82 per cent, respectively, with the identical interval in 2022 and 2021.
Late-stage investments value $879 million have been recorded in 2023 to date, contributing to greater than 90 per cent of the overall funding, which can also be a drop of 23 per cent in contrast with $1.14 billion raised in the identical interval in 2022.
Early-stage investments value $75.7 million have been recorded in 2023 (year-to-date), an 88 per cent drop from $618 million raised in the identical interval final yr, the report confirmed.
No new unicorns emerged on this sector this yr, as in opposition to two new unicorns in the identical interval final yr.
Amongst cities, Bengaluru takes the lead when it comes to whole funds raised until date, adopted by Mumbai and Gurugram.
Within the final two years, We Founder Circle, Peak XV Companions and MMPL Belief, have been probably the most lively buyers on this area. We Founder Circle, IPV, and LetsVenture have been the highest seed buyers, whereas Peak XV Companions, Higher Capital, and AngelList have been the highest early-stage buyers.
MMPL Belief, WestBridge Capital, and The Chan Zuckerberg Initiative have been the highest late-stage buyers, the report stated.



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