Everyone may know of the tough time Indian startups are going through with news of mass lay-offs and merger and acquisition (M&A) deals making the headlines. Investment to startups from venture capital (VC) firms have reduced significantly from Q3 2015 onwards.

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Investment activity in India for VC backed companies has reduced to $1,153 million in Q1 2016 from the heights of $2,897 million in Q3 2015, according to a CB Insights-KPMG report. From Q3 to Q4 2015 the investment had declined by as much as 47.5%. In Q4 2015 the investment had dropped to $1,519 million.

Although the difference in the number of deals in Q3 2015 compared to that in Q4 2015 and Q1 this year was not much, the funding amount had declined. For instance, in Q3 2015 there were 142 deals, while in Q4 it reduced to only 121 deals and further declined to 116 deals in Q1 2016.

The funding from VC firms were on the rise from Q1 2015 with $1,208 million to $2,346 million in Q2 FY2015. The number of deals had increased from 94 to 141 deals in Q2 FY2015.

The top deals included Snapdeal with $200 million raised through Series F funding, Clues Network raising $150 million through Series E funding and Big Basket raising $150 million through Series D funding.

The top cities which has raised the most amount of start funding includes Bangalore, Mumbai and New Delhi. Bangalore had the maximum 35 deals and raised $316 million from Q1 2015 to Q1 this year. Mumbai came in second and managed to raise $116 million from 22 deals, while New Delhi came in $249 million from 10 deals.