In a world where the startup ecosystem constantly evolves, the question on everyone's mind is: When will the startup funding winter thaw? In September, we witnessed five Indian startups securing substantial investments, each exceeding $100 million. While these funding events bring optimism, they also make us wonder if things are getting better for tech and digital startups.

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To gain deeper insights into the current state of the Indian startup funding scenario, CNBC-TV18's Nisha Poddar spoke to Arpit Agarwal, Investment Partner at Blume Ventures. Agarwal highlighted that while the startup funding winter persists, there are discernible trends within the market. Late-stage deals continue to be sluggish, with many companies taking longer to secure funding, often at valuations lower than expected.

However, Agarwal noted a positive shift in investor preferences. He emphasised that investors are increasingly favoring companies with positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) and PAT (Profit After Tax) figures.

He added, “What is definitely happening in the market is that there is a very strong preference towards EBITDA and PAT-positive companies. So, the late stage deals which are actually happening in the Indian market are largely close to EBITDA or close to PAT positive company which is a good positive sign. There is a clear preference in the market at this point of time.”

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While there are signs of change, Agarwal remained cautious about predicting an imminent revival in the startup funding environment.

“As far as revival is concerned I am suspecting that we may not have any revival in sight till maybe June of next year. That is the guidance we have given to our portfolio companies that they should not expect any more funding infusion internal and external till then. If something happens, of course, we should take it but not count on it and therefore cash conservation is the key theme at this point of time.”

JSW Ventures, a prominent player in the Indian startup investment scene, made headlines with two significant deals this week. They invested in Growcoms, a company specialising in spices, and also announced a stake sale in Purplle, a beauty omni-channel player.

For full interview, watch accompanying video

(Edited by : Asmita Pant)