Exclusive: 57 Startups Raise Above $100 Million This Year, Only 3.5% Were Profitable
News 18Even as startups have been resorting to lay-offs to cut costs amid the current volatile and uncertain market conditions, data sourced by news18.com shows that the finances of the firms are under stress as the number of profitable companies has come down this year. The data reveals that only 3.5 per cent of the startups raising $100 million or above during January-June 2022 were profitable as compared with 29.2 per cent in the year-ago period. According to the data from Venture Intelligence, a total of 57 companies in India raised funding of $100 million or more during January-June 2022 as against 48 such firms during the corresponding period last year. Ajay Malik, managing direct and head at RBSA, said, “Even though the number of companies raising $100 million and above have increased in 2022, the total amount raised has remained stagnant, indicating that the deal size has gone down…thus representing lower risk appetite among investor fraternity.” According to Venture Intelligence, only 3.5 per cent of these start-ups showed their Ebitda in positive this year, while the percentage of such start-ups were 29.2 per cent, thus showing significant financial stress on India’s start-up ecosystem this year. According to Venture Intelligence, 57 start-ups raised $100 million or above in 2022 till June Out of these, Ebitda for 45 companies is not available and only two such firms showed their earnings in positive.