In the third quarter of 2023, Indian ecommerce startups raised over $224 Mn in funding, marking a 47% year-on-year decline from the corresponding period in 2022. The median ticket size of investment stood at $1.3 Mn, reflecting a 32% decrease compared to Q3 2022
In contrast to startup funding, online festival sales soared to over $11 Bn, up 16% from 2022. Meesho outshined Flipkart and Amazon by offering top-notch deals, earning a 77% positive sentiment score compared to Flipkart’s 55% and Amazon’s 43%.
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Summary
Seed-stage startups defied general trends, seeing an 11% increase in total funding, indicating investors' sustained interest in early-stage innovation amid wider economic uncertainties. On the other hand, growth-stage companies witnessed a substantial 47% drop in funding, reflecting a more prudent stance on later-stage investments. This varied funding landscape highlights the importance for startups, especially in their growth phases, to establish robust fundamentals and a clear profitability roadmap to attract investment.
The overall funding in the Indian ecommerce startup ecosystem experienced a notable 47% year-over-year decrease, marked by reductions in both total investment volume and median ticket size, which fell by 32% and 47%, respectively.
Online festival sales exceeded $11 Bn this season, with 64% overall satisfaction in deals and discounts, favoring Meesho. However, the delivery experience garnered a mere 11% positive sentiment.
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