Despite a difficult global economic situation, investors in technology continue to invest significant amounts of money in Indian tech firms. A recent report from Dealroom and London & Partners found that India was the fourth highest country globally for venture capital investments, with $24.1 billion invested in 2022.

The research also revealed that out of the $24.1 billion invested in India, $10.7 billion went to companies located in Bengaluru, making it one of the top five cities in the world for venture capital investment in technology, alongside London and New York.

The sectors that played a significant role in India’s strong venture capital funding performance included education, food, media, financial technology, and transportation. Bengaluru was responsible for five out of the top 10 deals for Indian tech companies in 2022, including Byju’s ($800 million), Swiggy ($700 million), Dailyhunt ($805 million), Polygon ($450 million), and ShareChat ($225 million).In addition to Bengaluru, the state of Maharashtra also saw two large deals for ElasticRun ($300 million) and Xpressbees ($300 million) and Gurugram-based Delhivery ($300 million) also made it to the top 10 deals for Indian tech companies in 2022.

In addition to Bengaluru, other global cities that saw substantial funding were the Bay Area ($72.4 billion), New York ($28.3 billion), and Boston ($20 billion). Outside of the United States, London was the fourth-largest technology hub for venture capital funding and by far the largest in Europe, with tech companies in the UK capital receiving a total of $19.8 billion. At the national level, the top three countries for technology investment in 2022 were the US ($233.3 billion), followed by China ($48 billion) and the UK ($29.9 billion).

Hemin Bharucha, the Country Director for India at London & Partners, said, “It is encouraging to see both Bengaluru and London among the top five cities for global tech venture capital investments, despite the challenges and economic instability we’ve seen in the last few years.”According to Bharucha, both Bengaluru and London are resilient cities that are leading hubs for innovation, technology, and entrepreneurs. He also noted that it is exciting to see the UK and India feature in the top 5 countries for tech investment, which offers further proof that there are many opportunities for technology companies to do business across both regions. Bharucha also pointed out that the fact that London is the number one city in Europe for technology investment, demonstrates why Indian companies should consider London as a top place to expand internationally.

According to the data findings, the total global venture capital funding in 2022 was $485.2 billion, which represented a 33% decrease from the record levels seen in 2021 ($723 billion). The 2021 numbers were an unprecedented surge in economic activity post the opening up of COVID restrictions. However, the 2022 numbers were 28% higher than the global investments in 2020 ($348.9 billion) and any other year except 2021.