Indian startup funding growth almost 186% this quarter compared to the corresponding period last year
The India Tech Annual Factsheet 2021 by Tracxn finds that Startup Funding Growth in india grew 3x to $35.4 billion in 2021 as opposed to $13 billion in 2020. During this year, there were 1,926 funding rounds.
Series A+ rounds made up 674 of those. Accordingly, this year saw 3,143 new companies established and nearly 1,638 of them received funding regardless of the founding year. The year of 2021 also emerged as the year of unicorns since out of the total 77 unicorn companies, 41 obtained unicorn status in this year, making up 53% of all unicorns.
Approximately 166 series A investments amounted to $1.67 billion, according to data since December 20, while seed-stage deals accounted for nearly 396 deals with a total value of $705.86 million.
Interestingly, the top market for funding’s was Social Platforms such as ShareChat with the market raising $1.4 billion in 2021, posting a 1,733% rise in investments over 2020. Following this was the rising market of K-12 EdTech companies such as BYJU’S, Unacademy, Vedantu, among others, raising $1.1 billion and posting a growth of 54% in 2021 when compared to last year. At the third position stood payments companies such as Paytm, One97 Communications, and Pine Labs recording 189% growth from last year with $1.1 billion being pumped into the market.
The Indian startup ecosystem raised approximately $23 billion in the nine-month period between January and September this year, with more than 55 percent of the funding raised in Q3 2021 alone.
It’s usually the case that a few investors are always more active than the rest of the group in the market, the reports stated. Among the investors, venture capitalist (VC) firms Sequoia Capital, Tiger Global Management, Accel, Blume Ventures and Titan Capital emerged at the top while private equity (PE) firms such as Temasek, WestBridge, CDC Group, Lightrock and Dragoneer Investment Group were the top investors. The year saw 23% rise to 1,808 in unique investors as opposed 1,462 unique investors in 2020.
However, the bulk of the investments were directed towards pre-IPO financing rounds in companies such as Zomato, Ola, Policybazaar and Paytm, with the top 10 deals totaling up to $5.58 billion, Prequel data shared exclusively with ET, showed.
Sector Wise startup funding growth in Q3
While demonetization played a crucial role in the evolution of the way we transacted since early November 2016, the pandemic has brought a revolution in the ways we transacted, and also the general way digitization took charge as the survival mantra for many businesses.
For startups, there could and would possibly never be another catalyzing phase that has been unfolding since the onslaught of the pandemic.
We are expecting to draw the curtains on 2021 as a record-breaking year, setting up India on the path towards becoming the largest startup ecosystem in the years ahead.
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