Indian startups received $ 16.9 billion in venture capital in 2021, alongside Chinese counterparts in Asia Pacific (APAC) countries, GlobalData announced on Friday. “Despite the third wave of the COVID-19 pandemic, which is about to see a large and slow economic recovery, venture capital (VC) investors seem to have confidence in the Indian startup ecosystem. In fact, Indian startups only stood next to Chinese counterparts in terms of VC funding. “Value among APAC countries from January to July 2021,” said the leading data and analytics firm.
An analysis of GlobalData’s financial transactions database shows that between January and July 2021, a total of 828 VC financing transactions were announced in India, while the total disclosed funding value of these transactions was $ 16.9 billion.
Some of the notable VC funding deals announced in India in January-July 2021 include $ 3.6 billion from Flipkart, $ 502 million from Mohalla Tech (ShareChat), Zomato’s fundraising of around $ 500 million and $ 460 million from Think and Learn (Byjus).
Aurojyoti Bose, GlobalData’s lead analyst, said: “While some of the world’s key markets saw VC funding value declines in July compared to the previous month, India grew despite a decline in VC funding volume.”
Rising smartphone penetration and affordable mobile internet have turned India into a digital-first economy. Hence, tech startups are the biggest beneficiaries of this trend.
“According to research by GlobalData, India has the third largest tech unicorn ecosystem in the world after the US and China. During the COVID-19 pandemic, VC investors are showing interest in startups in topics such as e-commerce, social media and social networks, food delivery, edtech and digital payments, ”said Bose.
ALSO READ TECH NEWSLETTER OF THE DAY
Reserve Bank of India’s new norms will prohibit merchants from storing card details and payment providers from offering a one-click checkout service.
India, Bose said, remains one of the most important markets in APAC in terms of VC financing activities and the second most important market for VC investments in the region after China. “With vaccination advances in the country, it can be seen that VC investors are making huge investments.”