India’s Edtech Firms

Astock market meltdown did not bode well for the wider economic world’s profits starting in 2022, and as a result, start-up financing has slowed down to a trickle. Indian entrepreneurs raised nearly $12 billion in investment in the first quarter of the year, creating 13 new billion-dollar start-ups in the process. India received over $19.7 billion in start-up financing in the first half of 2022. In contrast, Indian entrepreneurs had raised nearly $32 billion in investments during the second half of 2021, which is about $12 billion more than they did in the first half of 2022. The numbers allude to the fact that the acceleration of venture capital investment has taken a hit in the first six months of 2022. Start-ups are under tremendous pressure as valuations have started to drop and expounding capital has been more challenging than in the past, especially for those who profited during the time of COVID-19.

Venture capital firms like Sequoia and Y Combinator have put the reins on their invested start-ups by asking them to cut down on expenses and simultaneously advocating to not lose the grip on the rate of scalability. The consequential effect of economising has transmuted into downsizing while keeping the benchmark of survival and profitability fluid.