2023 Report: Fintech and SaaS Rule Secondary Deals

January 23, 2024
1 min read

TLDR: The fintech and software-as-a-service (SaaS) sectors have dominated secondary deals in India for the second consecutive year, according to a report by private market intelligence platform Private Circle. During the funding peak in 2021, e-commerce saw the highest number of secondary deals, followed by fintech and media and entertainment. The report tracked 252 secondary deals in 117 start-ups valued at $500 million and above over the last three years. Start-up funding dropped 62% year-over-year in 2023, with 13 secondary deals compared to 84 in 2022 and 155 in 2021.

Key points:

  • The fintech and SaaS sectors saw the highest number of funding transactions for the second straight year in 2023, according to Private Circle’s ‘Indian Startups Deal Report 2023’.
  • Secondary deals in 2023 dropped by 80% compared to 2022 and 72% compared to 2021.
  • The report also highlighted that start-up funding dropped 62% year-over-year in 2023, with primary funding round deals falling 72% compared to previous years.
  • Lenskart raised the biggest funding round of $500 million, followed by other companies such as DMI Finance, PhonePe, and Udaan.
  • The report noted that venture capital funds are sitting on ample dry powder and venture capital activity is expected to pick up pace later in the year.

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