BENGALURU: Investors and founders in India’s startup ecosystem are bracing for a funding winter in 2020-21, as indicated by the slump in seed and early stage funding—considered crucial capital for startups—in the March quarter.
The covid-19 pandemic has challenged startup valuations, especially in the consumer Internet segment. A change in consumption pattern among consumers due to the nationwide lockdown, coupled with limited partners (LPs) turning cautious about their fund allocations, will hit early-stage funding in the upcoming quarters, investors and industry experts said.
The number of seed-stage deals in India fell 29% sequentially in the March quarter, while the number of early stage deals (Series A and B) declined around 30%,