Indian startups race past $20 billion funding in record year
- ByAyushi Ray | August 27, 2021
Indian startups race past $20 billion funding in record year, gaining from a pandemic-led digital adoption, record stock market listings, and regulatory crackdowns in China. Various startups across India raised $20.2 billion across 576 deals, surpassing the $13 billion from 878 deals in 2019, according to data from Venture Intelligence. The average deal size, too, more than doubled to $35 million this year, indicating the willingness of investors to take more risks on fledgling startups in their pursuit of the next multi-billion dollar outcome. The $20 billion figure was breached when manufacturing startup Zetwerk raised $120 million from investors for a valuation of $1.4 billion, the data showed. The year’s largest deals include online learning firms Byju’s and Eruditus, food delivery firms Zomato and Swiggy, and payments firm Pine Labs, which raised a combined $3.8 billion.
While market-leading Indian startups have raised large rounds of over $500 million in previous years, the sheer number as well the plans make this year unique. Zomato’s stellar listing, along with the hotly anticipated listing of Nykaa, Policybazaar, Paytm and others make investors believe that such a funding boom may not be a one-off. “I think this (kind of funding) is the new normal. So far, the money was not flowing into India the way it was in the US or China because of the lack of exits. That’s finally being fixed. Money is going back to investors,” said Tarun Davda, managing director at Matrix Partners India, an early-stage fund.
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