New Delhi:India retained its position as the second-largest destination for venture capital and growth funding within the Asia-Pacific region last year, a report showed on Thursday.
Despite facing headwinds, India's VC landscape exhibited resilience in 2023, marking a year of continued moderation, according to the report by Bain & Company in collaboration with the Indian Venture and Alternate Capital Association (IVCA).
"In a year seemingly rife with hurdles, investors demonstrated resilience by adjusting to the evolving landscape. There was a perceptible shift in investment focus from tech-first bets to more traditional sectors underpinned by strong fundamentals -- such as healthcare, retail, and financial services," said Sai Deo, Partner, Bain & Company.
Investment activity echoed a muted sentiment globally, with investments declining by 65 per cent relative to 2022 and reaching $9.6 billion in 2023 compared to $25.7 billion in the previous year.
Generative AI gained significant momentum as funding soared from $15 million to $250 million over 2022-23 globally. Overall, tech-first sectors (consumer tech, fintech, and software/SaaS) maintained their dominance in 2023, capturing nearly 60 per cent of funding.