According to the Tracxn report, the late stage funding for startups also plunged by 45% from $29.3 billion between January and November 2021 to $16.1 billion for the same period in 2022, which has dropped by 79% compared to the peak of Q3 2021. “Although last month has emerged as a ray of hope, it is still too early to assume that the bottom is behind us. We need to wait one or two quarters to see if the momentum continues,” said the expert from Tracxn.

The report shows the funding in Q3 2022 declined 58% in comparison to Q2 2022 and fell by 79% compared to the peak of Q3 2021. Tracxn said that in past one year the top funding rounds cleared by firms include -- BYJU'S ($965 million, Series F), VerSe ($805 million, Series J), Swiggy ($700 million, Series J), Tata Passenger ($496 million, Series D) and Polygon ($450 million, Series E).

At the same time, there were reports that Big Tech hirings in India is down by 95% from usual volume. The report says, FAANMG hiring in India is declining 95% from peak. Global tech companies such as Google, Facebook, Apple, Microsoft, Amazon, and Netflix are down by nearly 95% compared to typical active hiring volume in India - specialist staffing firm Xpheno said. There are active job postings of less than 2,000 jobs at present, the agency added. The active openings fell from 9,000 in July-August to 4,000 in mid-October.

Job postings by these firms decreased by 70% in the last quarter itself, and further by 95% compared to peak active job postings. The current hiring action is nearly a total pause amidst the macro-economic developments. Experts say that the next US Federal Reserve rate hike will amplify the recession.

Startups now call it ‘the funding winter’. The tech sector, a major beneficiary of this cheap liquidity during pandemic is the worst hit as money flow was reduced.

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