Geo-political instability appears to be taking a toll on the Indian start-ups with the total funding declining by 40 per cent to $6.8 billion in the April-June quarter, reveals a PwC India report.

The early-stage deals comprised over 60 per cent of the total with an average ticket size of $5 million, as per the PwC India report titled, “Startup Deals Tracker — Q2 CY22”.

“After three consecutive quarters of raising more than $10 billion, the total funding in the Indian start-up ecosystem fell by 40 per cent during Q2 CY22 to reach $6.8 billion. “The decline can be attributed to a global slowdown, decrease in tech stock valuations, inflation and geopolitical instability,” it added.

Software as a Service (SaaS) and fintech companies had the highest share of funding in the second quarter of Calender Year (CY) 2022, totalling more than $ 3.1 billion, the report said.

It further said that early-stage deals comprised more than 60 per cent of the total deal volumes with an average ticket size of $5 million.

Funding in early-stage deals during Q2 CY22 continued to be stable at around $800 million. and could remain stable or even grow in the next few quarters.