- An estimation and inspection of Global Data’s financial deals database reveal that a total of 828 VC funding deals were announced in India during January-July 2021 while the total disclosed funding value of these deals stood at $16.9 billion. Indian startups got $16.9 billion of venture capital funding in 2021, next only to Chinese counterparts in the Asia-Pacific (APAC) countries, Global Data said Friday. A computation on Global Data’s financial deals database reveals that a total of 828 VC funding deals were announced in India during January-July 2021 while the total disclosed funding value of these deals stood at $16.9 billion.
- VC buyers appear to be reposing religion within the Indian startup ecosystem.
- Indian start-ups stood subsequent solely to Chinese language counterparts by way of VC funding worth among the many APAC international locations throughout January to July 2021,” the main knowledge and analytics firm mentioned.
According to a study by Asian Venture Capital Journal, for every dollar invested in Chinese tech firms, VC funds put in $1.50 on Indian tech start-ups during the July-September quarter. The statement further added that growth-stage deals in India's tech sector grew 287 percent during the first half of the year against a 118 percent increase in China while the number of deals until October jumped 62 percent versus a 47 percent growth in the Chinese tech sector.
The transition slump in Chinese venture capital funding could be the result of the authority's increased scrutiny of tech companies in the country. The government's months-long regulatory crackdown has impacted several leading tech firms across sectors such as e-commerce, education, gig economy, and online insurance. The crackdown has wiped off more than $1 trillion of the collective market capitalization of some of China's tech giants including Tencent and Alibaba since February.
The CB Insights report titled 'The State of Venture' that analyses deal-making, funding, and exits in private-market companies revealed venture capital funding in China grew 26 percent quarter-on-quarter (QoQ) in Q3 (calendar year) to reach $25.5 billion while funding in India jumped 68 percent QoQ and an astounding 195 percent YoY to $9.9 billion.
Despite the COVID-19 pandemic looming large and slow economic recovery, venture capital (VC) investors seem to be reposing faith in the Indian startup ecosystem. Indian startups stood next only to Chinese counterparts in terms of VC funding value among the APAC countries during January to July 2021," the leading data and analytics company said.
Aurojyoti Bose, who is a Lead Analyst at Global Data, said: "While some of the top key markets globally witnessed a decline in VC funding value in July compared to the previous month, India managed to showcase growth despite a decline in VC funding deal volume." Some of the notable VC funding deals announced in India during January-July 2021 include $3.6 billion raised by Flipkart, $502 million raised by Mohalla Tech (Share Chat), Zomato's capital raising of around $500 million, and $460 million raised by Think and Learn (Byju's).
Aurojyoti Bose said, "According to Global Data’s research, India has the third-largest tech unicorn ecosystem in the world, behind the US and China. During the COVID-19 pandemic, VC investors are evincing interest in startups across themes such as e-commerce, social media, and social networking, food delivery, edtech, and digital payments.” Social commerce firm Meesho ($570 million), ride-hailing company Ola Cabs ($500 million), food delivery startup Swiggy ($450 million), and edtech firms Unacademy ($440 million) and Eruditus ($430 million) raised the top five equity deals in the third quarter. Meesho's $570 million fundraisings found a place among the global top 10 Series E+ deal.
In adherence with Global Data’s analysis, India has the third-largest tech unicorn ecosystem on this planet, behind the US and China. “Throughout the COVID-19 pandemic, VC buyers are evincing curiosity in startups throughout themes similar to e-commerce, social media, and social networking, meals supply, edtech, and digital funds,” Bose illustrated. Bose mentioned that one of many key APAC markets by way of VC funding exercise and is the second prime marketplace for VC investments within the area after China. “With progress in vaccination within the nation, VC buyers are seen committing big-ticket investments.”