Indian startups raise record $10 bn in a quarter

Wednesday 20th October 2021 06:58 EDT
 

Indian startups have got record funding in Q3 of 2021, with investment totalling $10.9 billion across 347 deals - the first-time investments in a quarter have crossed the $10 billion mark, as per the PwC India. This was twice the amount of funding received in Q3 2020 and was up about 41% over the Q2 2021 figure, said the findings of the report titled 'Startup Perspectives-Q3 2021'.

The increase in funding activity was noted across all sectors, both by value and volume. However, fintech, edtech and Software-as-a- service (SaaS) are the top three hot investment sectors in 2021, together accounting for about 47 per cent of the total funding activity. The fintech sector saw a four-fold increase in funds raised in the first three quarters of 2021, over the first three quarters of 2020. Six fintech companies attained unicorn status.

Discussing the investment in startups 2021 thus far, Amit Nawka, Partner–Deals & Startups Leader, PwC India, said, “Start-ups have leveraged the accelerated digital adoption seen amongst businesses and individuals alike to create newer business models and this is driving investor interest in a big way. We are seeing the average deal size increase and quicker funding rounds which has led to a surge in deal activity across sectors, since early this year.”

Fintech investments: FinTech investments in 2021 have grown exponentially. In the first three quarters of 2021 investments worth $4.6 billion in the FinTech space were recorded, up approximately 3x from $1.6 billion in 2020.

Bengaluru and NCR continue to be the key start-up cities in India, together contributing around 76–78 per cent of the total funding activity in the first three quarters of both CY20 and CY21, followed by Mumbai and Pune.


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