Indian Startup Funding Hits New Milestone

SUMMARY

Between 2014 and 2021, Indian startup raised $103 Bn in funding across 7,241 deals

Indian startup ecosystem recorded 238 mega deals ($100 Bn & above deals) during the same period

The year 2021 accounted for almost 31.4% of the total $103 Bn invested in the Indian ecosystem between 2014 and 2021 (23rd October)

The Indian startup ecosystem last week crossed a milestone that many missed! On October 21, 2021, the Indian startup ecosystem crossed a landmark feat of receiving $100 Bn in funding since 2014. Indian startups raised $103 Bn across 7,241 deals between 2014 and 2021 (23rd October).

From $5.3 Bn in 2014 to $12.8 Bn in 2019, Indian startups recorded $32.3 Bn in funding in 2021 alone (till 23rd October) which helped Indian startups achieve this milestone much earlier than anticipated.

Wohoo! Indian Startups Have Raised $100 Bn Since 2014

The year 2014 saw Indian startups mopped up $5.3 Bn, followed by $9.3 Bn in 2015 to $13.2 Bn in 2017 and until now $32.3 Bn in 2021.

From 4,500 startups launched in 2014 to 8,000 startups launched in 2015 and 3,500 in 2019, India has seen the launch of over 55,450 startups (as of 2020).

Indian Startup Funding At All-Time High In 2021

The year 2021 accounted for almost 31.4% of the total $103 Bn invested in the Indian ecosystem between 2014 and 2021 (23rd October). Overall, Indian startups raised about $32.3 Bn across 1232 deals. The funding was spiked due to 83 mega deals recorded between January to October (23rd).

The year also saw a record of 33 Indian startups entering the unicorn club.

The jump in funding also comes at a time when over a dozen Indian startups are heading for an IPO. While Zomato and CarTrade have already listed, Nykaa and Fino Payments Banks began the subscription this week. Paytm, MobiKwik, Policybazaar are next in line for a stock market debut.

The Mega Rounds

According to Inc42 analysis, about 4.3% (or 238 deals) of the total deals (7,241) were $100 Mn and above. These 238 deals took away 62% (or $64 Bn) of the total funding i.e. $103 Bn invested in Indian startups during the 2014-2021 period.

We have considered $100 Mn and above round as a mega deal.

However, it is worth noting that since 2014, only 3.3% of the total deals were worth between $100 Mn – $299 Mn, 0.9% of the total deal was $300 Mn – $999 Mn, and 0.1% above $1 Bn. About 95.6% of the total deal was less than $100 Mn between 2014 and 2021.

On the M&A side, about 842 deals were recorded in the Indian startup ecosystem during the same period. The year 2021 has so far recorded 129 M&A deals which is already a 57% YoY jump.

Sandeep Singh contributed to this piece