$ 17.2 billion infused into Indian startup ecosystem by venture capitalists from January to July: report

Venture capital firms injected a total of $ 17.2 billion in investment into the Indian startup ecosystem between January and July 2021, according to data released by the Indian Private Equity and Venture Capital Association (IVCA) and Venture Intelligence (VI).

This is significantly more than the investments of $ 11.1 billion and $ 13 billion made by venture capital firms in 2020 and 2019, respectively.

Venture capital funding included early stage investments for the F Series in companies less than 10 years old and late-stage technology investments.

Some of the large VC transactions included those of 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 flow of business is expected to continue into the second half of the year with expected movement in the areas of AI / ML, Edtech and food technology,” said IVCA.

The report states that the average size of VC transaction checks increased in 2021 through stages compared to 2019-2020.

The amount invested in seed funding was around $ 1.8 million, up from $ 1.2 million in 2019, according to the report.

The amount invested in Series A and B financings has seen a marginal increase with an investment of $ 6.8 million, out of 110 deals so far.

What’s more, growth-stage deals have nearly doubled this year – $ 7.5 million in 2021 from nearly $ 4.9 million in 2020, according to the report.

The average amount infused into the advanced tech ecosystem through July 2021 was $ 217.57 million across 38 transactions, he added.

“There are favorable winds supporting the exits as the ecosystem has started doing IPOs and an offshore listing for Indian startups is being discussed with the Indian government also mostly in phase with this,” said said IVCA President Rajat Tandon.

The story of Indian consumption is really playing out, users have shifted more to digital shopping during the COVID era, he added.

“Amid positive sentiment, cautious optimism, increased fundraising, larger amount of checks, even in early stage operations, and wonderful support from the Indian government, refer to the recent announcement of the opening of domestic capital of EPFO ​​and LIC for AIFs and Indian startups, the state of the Indian startup-VC market seems stable and promising, ”he said. he declares.

SoftBank Corp leads the charts with roughly $ 3.5 billion in investments over the past three years, followed by Tiger Global, Temasek, Sequoia Capital and Prosus Ventures, according to the report.

In terms of the most active venture capitalists with AIF (Alternative Investment Fund) vehicles, IIFL VC led the street with nearly $ 260 million in investment, followed by Matrix Partners India with $ 110 million. dollars and Mirae Asset Global Investments with $ 91 million in investment, he added. .

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