Indian startups raised $3 billion in the third quarter of 2022, ending September, down 57% from the second quarter and an 80% decrease year-over-year, according to market intelligence platform Tracxn.

"India is currently experiencing a funding slowdown which is expected to continue for the next 12-18 months and the effects of the funding slowdown are expected to intensify going forward," says Neha Singh, co-founder of Tracxn.

With about 334 funding rounds recorded in Q3 2022, down from 674 in the same quarter a year ago, according to the report, the Indian startup ecosystem, which appeared to be the darling of VC funding in Asia, is now experiencing a major funding crunch.

Chart: Tracxn