Advertisement
Wednesday, Nov 30, 2022
Outlook.com
Outlook.com

Indian Startups Bag $17Bn Venture Capital Investment In 2021: Report

The investment received during Jan-July is much higher than the $11.1 billion and $13 billion investments made by VCs in 2020 and 2019, respectively.

Indian Startups Bag $17Bn Venture Capital Investment In 2021: Report
The average VC deal cheque size expanded in 2021 across stages when compared to 2019-20. | Representational Image
Indian Startups Bag $17Bn Venture Capital Investment In 2021: Report
outlookindia.com
2021-08-22T22:38:58+05:30

The Indian startup ecosystem has got a total of $ 17.2 billion investment from Venture capital firms  during January-July 2021.

According to the Indian Private Equity and Venture Capital Association (IVCA) and Venture Intelligence (VI), which revealed the latest data, the investment received during Jan-July is much higher than the $11.1 billion and $13 billion investments made by VCs in 2020 and 2019, respectively.

VC funding included seed to series F investments in companies less than 10 years old, and late stage tech investments.

Some of the big VC deals included those in Udaan, Lenskart, Zomato, Swiggy, PharmEasy, Meesho, Pine Labs, Zeta, Cred, RazorPay, HealthifyMe, Byju's, Unacademy, Eruditus, Vedantu, Dunzo, Bira 91, Boat, Mamaearth, MyGlamm, Uniphore Software Systems, Yellow.ai, Entropik and others.

"The strong deal flow is expected to continue in the latter half of the year with movement forecast in the AI/ML, Edtech and food tech space," IVCA said.

The report said the average VC deal cheque size expanded in 2021 across stages when compared to 2019-20.

The amount put in seed funding was approximately $1.8 million compared to $1.2 million in 2019, the report said.

The amount invested in series A and B funding witnessed a marginal increase with $6.8 million investment, across 110 deals till now.

Additionally, the growth stage deals almost doubled this year -- $7.5 million in 2021 whereas it was close to $ 4.9 million in 2020, the report said.

The average amount infused in the late-stage tech ecosystem till July in 2021 was $ 217.57 million across 38 deals, it added.

"There are tailwinds supporting exits as the ecosystem has started actioning IPOs and offshore listing for Indian startups is under discussion, with the Government of India also in sync with this principally," IVCA President Rajat Tandon said.

The Indian consumption story is really playing out, users have been switching to digital buying more through the COVID times, he added.

"Amidst positive sentiment, cautious optimism, increased funding numbers, larger cheque sizes even at early-stage deals, and the wonderful Government of India support, refer to the recent announcement of opening up domestic capital from EPFO and LIC for Indian AIFs and startups, the state of the Indian Startup-VC Market looks stable and promising," he said.

SoftBank Corp led the charts with approximately $ 3.5 billion worth of investments in the past three years, followed by Tiger Global, Temasek, Sequoia Capital and Prosus Ventures, the report noted.

In terms of the most active VC investors with AIF (Alternative Investment Funds) vehicles, IIFL VC led the deal street with close to $ 260 million investment, followed by Matrix Partners India with $ 110 million and Mirae Asset Global Investments with $91 million investment, it added.

(PTI inputs)

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

Lament Of Separation: Songs Of Habba Khatun, Last Queen Of Kashmir, Still Echo In Valley

In happy times and sad, Habba Khatun’s sensuous songs make both young and old emotional. With the never-ending conflict bringing tragedies to every doorstep, Habba’s lyrics of separation amplify their mourning.

How Indian Laws Govern People’s Right To Love And Live

How Indian Laws Govern People’s Right To Love And Live

In India, only those relationships between a man and a woman are considered to be legitimate when there is a marriage between the two.

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Kohli Quits Test Captaincy, Leaves Leadership Vacuum

Virat Kohli, 33, had recently stepped down as India's T20I captain and was subsequently removed as the ODI captain.

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

UP Elections 2022: How Congress Is Harnessing Power Of 'Persecuted' Women To Counter BJP

A Mahila Congress leader, who is the face of the ‘Ladki Hoon, Lad Sakti Hoon’ campaign, however, has accused the party of anti-women bias after she was denied a ticket.

Advertisement