Private Capital
Four charts on India's thriving startup landscape
14 Oct 2020
Between 2016-2020 (up to May), over $63 billion of venture
capital (seed stage through to late stage) has been invested in Indian
technology startups. 2019 saw over $34 billion injected into innovative digital
firms, and while Covid-19 has impacted investment appetite of venture capitalists,
2020’s outlook remains relatively bright.
Around 65% of investments in the analysed period have flown to
growing startups – promising firms that raised Seed, and Series A through to
Series D funding rounds. Around half of the largest ticket sizes were
investment of $100 million or more.
Not surprisingly, tech-enabled startups have dominated the
funding landscape in India, which according to Praxis Global Alliance – an
Indian-origin management consulting firm – has turned India into the third
largest technology startup hub in the world. In the country’s early-stage
segment ($2.5 billion), the largest chuck of funds went to startups specialised
in SaaS and AI technologies, followed by online businesses and platforms.
India’s startup ecosystem is concentrated in three major cities:
Bangalore, Delhi and Mumbai – all three metropoles rank among the 10 largest
startup cities in Asia Pacific.
According to the market analysis, India is now home to over 50,000+
startups. They are funded privately, and through a network of more than 1,000
active institutional investors, and supported in their growth through a network
of more than 330 accelerators and incubators.
The
full article was originally published on Consultancy.asia.