Reflecting on the Past Year: A Look Back at 2022 | Upsparks
For investors and founders, 2022 was not just one of the most difficult years for startup funding, but also one of the most uncertain. The year began with a tailwind of 2021 funding, the highest in India, and then slowed as the year progressed.
For us, the year began with a bang. In January, our portfolio company Pixis announced its $100 million Series C funding round. Pixis has been doing exceptionally well and is the star of our portfolio.
This year, Upsparks made numerous meaningful introductions to our portfolio companies, which have resulted in many successful fundraises, hirings, and partnerships.
We are thrilled to report that our portfolio companies have achieved a number of notable milestones this year. We are proud to have supported all our founders and teams in their growth and success and look forward to continuing to work with them in the future.
Our relationships with Indian and Global funds have also grown over time. We’ve already begun working with some of the large funds, both formally and informally, to assist our portfolio companies in raising their follow-up rounds.
A look at the numbers
We invested in 25 startups in 2022, from different verticals, from SaaS to DeepTech and beyond.
SaaS -7
Web3 - 5
Fintech - 4
Deeptech - 3
Commerce - 2
Gaming - 2
MarTech - 1
D2C - 1
Our portfolio is now 62 companies strong.
Our focus continues to be on SaaS, FinTech, B2B Commerce, and DeepTech startups, and we are constantly seeking out innovative and promising startups to partner with.
In August, we held our first Founders Meet — Upsparks Fusion 2022, where 47 founders from 30+ portfolio companies gathered to network with one another.
It was a fantastic mix in which knowledge was shared and relationships were built.
The slowdown, and what lies ahead
The term “funding winter” gained traction in the second half of the year. Startups were bracing themselves for a funding crunch. Though there were minor tremors in early-stage funding, we saw the majority of late-stage funding stall.
However, as funding dried up, many startups, including big names, laid off thousands of employees and shut down non-core verticals, while also having to reduce valuations. Despite this, early-stage investments in the country have remained positive.
We believe the foundations of the Indian economy are very solid.
The recent fundraising announcements of the India-dedicated funds are evidence of the sizeable amount of cash waiting to be effectively deployed, and Indian start-ups will continue to be a desirable asset class for investors worldwide.
Finally, 2022 presented challenges to each of us in different ways. Things would be different in 2023. The situation of Indian start-ups’ hypergrowth will slow down as a lot of attention will be paid to fundamentals like revenue, cost control, and profits.
This is the time to build a fundamentally strong business, focus on unit economics, and have an extended runway.
We at Upsparks are excited to engage with and support exceptional founders in the coming year.
Wishing the best to come!
