THE YEAR 2019 SAW INDIAN TECH STARTUP RAISE A RECORD $14.5 BILLION FUNDING
It’s understood, an Indian tech startup has never had it easy, precisely when it comes to fundraising, but this year’s achievement surpassed the expectation of many as local tech startups in the country pulled$14.5 billion, breaking their last year record which was $10.6 billion, according to reports from Tracxn.
Considering how it all happened, a total of 1,185 financing rounds emerged from local tech startups in India this year. 817 financing rounds came from investors while 459 emerged from Series A or later rounds, with these statistics, it’s evident investors have trust and willing to reinvest.
Other reports from venture debt firm InnoVen Capital showed the participation of early-stage startups, considered to be pre-Series A or angel financing round which practically saw the startups raise $6.9 billion in the year 2019, doubling their $3.3 billion 2018 record.
In the same vein, the firm in its analysis also made it clear that early startups that did struggle to attract investors was able to pull 22% year-over-year increase based on the number of financing deals they participated in the year 2019, with 15% increase from the previous year – accumulated to $2.6 million.
According to Tracxn, 128 startups in India were acquired last year, four emerged on public listing, and 9 equally became unicorns in the year 2019. Indian tech startups saw the attraction of a good number of foreign investors, placing the nation’s startup space in steady growth.
The country’s fundraising witnessed its decline in 2016 when the tech startups pulled $4.3 billion – down from $7.9 billion raised in 2015. But, ever since, the capital flow has increased significantly, however, Tracxn stipulated that:
“The decade has seen an impressive twenty-five times growth from a tiny $550 million in 2010 to $14.5 billion in 2019 in terms of the total funding raised by the startups”.
At this point, it isn’t just about funds raised by the startups, but their impact on tackling societal challenges was observed. Meanwhile, merging the achievement of other Indian tech startup(s) with Tracxn analysis, Oyo alone raised $1.5 billion, followed by logistics startups ‘Elastic Run’, Delhivery, and Ecom Express.
On the other hand, a financial payment startup ‘Paytm’ raised 10B rupees ($1B) in a single round tagged Series G, according to the company’s announcement, and should be considered as the highest funds raised by an Indian startup in a single round.
In another dimension, Sequoia Capital which pulled more than 50 investments was practically the most active venture capital fund for India tech startups for the year 2019.
Lastly from here, 2020 is new and fresh. Should these startups double their funding! we should expect tens of billions of dollars.
- What is your take on Indian tech startup achievement in 2019?
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