In 2023, the capital scarcity posed significant challenges for the Indian startup scene as well, impeding the money raised by cutting-edge tech companies and delaying the opening of new businesses.
Startup funding reached a seven-year low in 2023 and fell back to levels seen in 2017. Indian entrepreneurs raised just $10 billion through 897 deals last year, compared to $13 billion through 996 deals in 2017, according to Inc42 statistics. Unavoidably, there was a significant drop in the number of YoY investors participating in startup fundraising deals.
Nonetheless, most business owners who took part in Inc42’s founders survey in 2023 believed that funding issues may begin to lessen somewhat in the second half of 2024. And there’s good reason for this optimism. With more than 68,000 firms and more than 9,700 investors, India has managed to hold its ranking as the third-largest global digital startup ecosystem, despite numerous obstacles.
Not only that, but over the previous ten years, Indian startups have generated over 10 lakh new jobs. Investors are relying on this confidence to identify the next big thing within the Indian startup scene.
The $23 billion in money that were raised between 2021 and 2023 may also be useful. It’s interesting to note that a large amount of these funds remain unspent, with over one-third of investors failing to commit even half of their startup fund corpus.
Even though this is the forecast for the future, it’s crucial to consider the investors who managed to announce a sizable number of agreements last year despite the challenging market conditions. These investors were notable for their unshakable belief in the Indian startup scene and their ability to inspire confidence in all parties involved.
Having said that, below is a list of the top 2023 startup investors.
AngelList India: AngelList India closed 180 deals in 2023, which was the most in the third-largest startup ecosystem globally. Throughout the year, the angel network supported a number of companies, including the hyperlocal over-the-top (OTT) platform STAGE, the homegrown beer brand Proost Beer, the finance business EquityList, and the healthtech startup CareFi.
AngelList, which was founded in 2009 by Naval Ravikant, allows investors to participate in investment syndicates with accredited backers for as little as $1,000. In 2019, it launched an angel and venture fund with an emphasis on India.
LetsVenture: In 2023, LetsVenture revealed 159 agreements. Among the notable names it invested in during the year were Adcount Technologies, the parent company of restaurant supply chain management startup SupplyNote; Burger Singh, a homegrown quick service restaurant chain; Clensta, a D2C beauty and personal care startup; and The Energy Company, a full stack battery platform.
LetsVenture, a startup investment marketplace founded in 2013 by Shanti Mohan and Sanjay Jha, enables investors to research and fund startups via its in-house technology platform. It makes it easier for businesses looking for investment to create online profiles that are ready for investment and interact with authorized investors.
Stride Ventures: Stride Ventures, the most active venture debt investor of 2023, reported 110 agreements. Fintech unicorn Slice, cloud kitchen unicorn Rebel Foods, fintech startup OneStack, and mobility company Chalo are a few of the most well-known startups that emerged this year.
Ishpreet Gandhi founded the Delhi-based venture debt firm in 2019, and it makes investments in companies in a variety of industries, including fintech, agritech, B2B commerce, healthtech, B2B SaaS, mobility, and energy solutions.
Alteria Capital: In 2023, Alteria Capital, a venture debt business based in Mumbai, reported 107 agreements. The year saw the venture debt firm invest in a number of companies, including the D2C backpack startup Mokobara, the e-commerce roll-up unicorn Mensa, the ebike manufacturer EMotorad, the B2B marketplace Jumbotail, and ecommerce roll-up unicorn Mensa.
Ajay Hattangdi and Vinod Murali, who held several executive positions at Silicon Valley Bank India, founded the fund in 2017. Venture debt fund Alteria Capital focuses on cutting edge companies supported by major VC firms.
WE Founder Circle: We Founder Circle, a networking platform for angel investors, revealed 103 agreements for 2023. Throughout the year, it supported a number of startups, including coliving startup Settl, SaaS platform TestNTrack, and coworking marketplace Stylework.
We Founder Circle was established in 2020 by Gaurav Sanghavi, Neeraj Tyagi, Bhawna Bhatnagar, Deo Saurabh, and Vikas Aggarwal. Since then, the group has supported more over 70 domestic businesses. With 6,500 investors spread over 40 countries, it has a large network.
100X.VC: The early-stage venture capital firm 100X.VC closed 62 deals in 2023, supporting businesses like Pikndel, a platform that offers same-day delivery services, Offside, a social network for cricket fans, and Roopya, a company that provides analytics and infrastructure-as-a-service.
An industry-neutral fund called 100X.VC was established in 2019 by Sanjay Mehta, Ninad Karpe, Shashank Randev, Yagnesh Sanghrajka, and Vatsal Kanakiya. The fund makes investments in early-stage companies.
Ah! Ventures: A VC business situated in Mumbai, huh! Ventures supported 55 deals in 2023 and took part in fundraising rounds for firms including Helo Health, a medtech startup, FlexifyMe, a healthtech startup, and Klassroom Edutech, which was financed by Suniel Shetty.
Ah! Ventures, an early-stage startup funding platform that is sector-agnostic and curated by Abhijeet Kumar and Harshod Lahoti, was founded. It can raise up to $10 million. The early-stage firms across various areas, such as FlexifyMe, CarEasy, and Sugar Watchers, have received backing from the Mumbai-based company.
Mumbai Angels: Mumbai Angels Network closed fifty-five deals in 2023 before being acquired in January 2023 by 360 ONE, an alternative investment organization. It has supported several businesses this year, including the cold supply chain startup Celcius, the Delhi-based startup Proost Beer, the personal care startup Cleansta, and the online learning platform ixamBee.
Mumbai Angels Network is an Indian startup investment firm that was established in 2006. It has supported numerous businesses over the years, including Adsparx, Adonmo, and BabyChakra, to name a few.
Marwari Catalysts: Marwari Catalysts, a startup accelerator, took part in 50 transactions in 2023. It has supported several companies over the years, including Bank Sathi, UR Turms, and Jaipur Watch Company.
Marwari Catalysts is a rapidly expanding startup accelerator that was established in 2019. MCats boosts economies through its startup acceleration program, Thrive, which is intended to assist companies in navigating and succeeding in the ever-changing business landscape. The program focuses on underutilized Tier II and Tier III cities.
IAN Group: In 2023, the Indian Angel Network (IAN) disclosed 38 agreements. It supported businesses in burgeoning industries. It also spearheaded investment rounds for cybersecurity startup SecurWeave and spacetech startup Manastu Space.
IAN was founded in 2006 by Ruparel, Srivastava, and Raman Roy with the goal of facilitating the formation of angel networks to support early-stage companies.
