Indian Startups End 2020 on Strong Note Even as Chinese Investors Dry Up Cash Flow

Indian startups understandably saw a decline in the amount of money they raised through 2020, as the Covid-19 pandemic and its subsequent impact on Indian and global economies took its toll. According to consultancy firm Tracxn, 2020 marked the first year since 2016 when the total amount of funding raised by startups in India failed to cross the $10 billion mark. The total number of deals that startups struck with funding houses declined from 1,185 funding rounds in 2019, to 1,088 rounds in 2020. This marks a decline of about 8.2 percent in the total funding rounds that took place among Indian startups – one of the world’s largest hubs for aspiring ventures.

However, it is important to note that much of this decline happened in the first half of 2020, when India and large chunks of the world went under lockdown, thereby restricting businesses and economies. During the first six months, Tracxn’s report states that in the first six months of 2020, startups raised a total of around $4.2 billion from 461 reported deals. This accounts for about 42.4 percent of all deals in the start of the year, suggesting that despite the pandemic and its economy impact, interest still remains strong in the prospect that homegrown startups represent.

The full article was originally published on News18