Top VC firms reduce investments in India amid macroeconomic uncertainty

With late-stage funding rounds becoming tougher, they are focusing more on due diligence, profitability path, governance and early entry into companies at lower valuations

Top venture capital firms such as Tiger Global, Accel, Softbank and Sequoia Capital India have moved to small ticket sizes as the funding winter persists. Investments by these large players have come down drastically in 2022 and experts warn that the trend is expected to continue.

The number of rounds that Tiger Global invested in last calendar year (2022) dipped 26.83 from the figure in 2021, according to the analysis by Tracxn. Seventy five per cent of Tiger Global's investments were ‘late stage’ in 2021, at 31 rounds. In 2022, ‘early stage’ and ‘seed stage’ rounds contributed to 56 per