Venture capital companies contributed in total $ 17.2 billion investment in the Indian startup ecosystem during January-July 2021 according to data released by Indian Private Equity and Venture Capital Association (IVCA) and Venture Intelligence (VI).
This is much higher than the $ 11.1 billion and $ 13 billion investments made by VCs in 2020 and 2019, respectively.
VC financing included seed for series F investments in companies under 10 years of age and late-stage technological investments.
Some of the major VC offerings included those in 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 agreement flow is expected to continue in the second half of the year with movement forecasts in the AI / ML, Edtech and food tech space,” said IVCA.
The report said the average size of VC agreements was expanded in 2021 across phases compared to 2019-20.
The amount invested in seed financing was approx. $ 1.8 million compared to $ 1.2 million in 2019, the report states.
The amount invested in Series A and B financing witnessed a marginal increase of $ 6.8 million investment across 110 trades to date.
In addition, the growth phase agreements have almost doubled this year – $ 7.5 million in 2021 – whereas it was close to $ 4.9 million by 2020, the report said.
The average amount infused into the late technology ecosystem until July of 2021 was $ 217.57 million across 38 agreements, it added.
“There are tailwinds supporting outputs as the ecosystem has started trading in stock quotes, and offshore listing for Indian startups is under discussion, and the Indian government is also largely in sync with this,” said IVCA President Rajat Tandon.
The Indian consumption history is really playing out, users have switched to digital buying more through the COVID era, he added.
“In the midst of a positive mood, cautious optimism, increased funding, larger check sizes, even by early agreements, and the wonderful Indian government support, refers to the recent announcement of domestic capital opening by EPFO and LIC for Indian AIFs and startups, the state of the Indian start-up VC market looks stable and promising, ”he said.
SoftBank Corp led the charts with investments worth approximately $ 3.5 billion in the last three years, followed by Tiger Global, Temasek, Sequoia Capital and Prosus Ventures, the report states.
In terms of the most active VC investors with AIF (Alternative Investment Funds) vehicles, IIFL led the VC deal street with close to $ 260 million investment, followed by Matrix Partners India with $ 110 million and Mirae Asset Global Investments with $ 91 million investment, added it.
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