Indian startups raise US$ 16.9 billion VC funding in 2021, next only to China

According to GlobalData, Indian entrepreneurs received US$ 16.9 billion in venture capital investment in 2021, second only to Chinese peers in the Asia-Pacific (APAC) region. “Despite the third wave of the COVID-19 pandemic looming large and a sluggish economic recovery, venture capitalists (VCs) appear to be placing their trust in India's startup ecosystem. During the period January to July 2021, Indian companies were second only to Chinese counterparts in terms of VC financing worth across APAC nations.” the prominent data and analytics firm said.

According to GlobalData's financial transactions database, 828 venture capital financing agreements were reported in India between January and July 2021, with a total declared funding value of US$ 16.9 billion.

Flipkart raised US$ 3.6 billion, Mohalla Tech (ShareChat) raised US$ 502 million, Zomato raised about US$ 500 million, and Think and Learn (Byju's) raised US$ 460 million in India between January and July 2021.

“While several of the top major countries globally saw a drop in VC financing value in July compared to the previous month, India managed to display growth despite a decline in VC funding transaction volume,” stated Mr. Aurojyoti Bose, Lead Analyst at GlobalData.

India has becoming a digital-first economy as smartphone usage has increased and mobile Internet has become cheaper. As a result, IT firms have benefited the most from this trend.

“According to GlobalData, India has the world's third-largest tech unicorn ecosystem, after only the United States and China. VC investors are showing interest in companies in e-commerce, social media and social networking, food delivery, edtech, and digital payments at the COVID-19 pandemic” According to Mr. Bose.

According to Mr. Bose, India remains one of the most important APAC regions for VC investing, and it is the region's second-largest VC market after China. “With the country's advances in immunization, VC investors are seen investing large-ticket investments.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.