The first domino fell in February last year, and it’s only now that the domino effect is being seen across India. The pandemic is the biggest unforeseen challenge thrown up for businesses. But things that changed in 2020 have led to a 2021 that’s quite unlike any other year in the Indian startup history.
It has led to this perfect storm in the Indian startup ecosystem today, where funding is at an all-time high, startups are bullish about going public, founders and investors are seeing exits through acquisitions by corporates and late-stage startups, and some startups are even providing exits to legacy companies.
Ironically, the trigger for startups going public was the stock market crash in February last year. An event like this always brings in new investors as the bar for entry is lowered in a down market. The share of individual investors in the cash market turnover has also risen to 45% from 39% in a year, National Stock Exchange data shows.