Indian Tech Startup Funding Report Q1 2021

In the first quarter of CY2021, Indian startups raised $2.7 Bn from 268 funding deals. However, the funding amount was 12% lower than the quarterly average (2017-2020) of $3.1 Bn. 

Fintech was the most preferred startup sector in Q1 2021. Compared to the previous quarter (Q4 2020), the number of funding deals was 26% higher. It was also the top startup sector in 2020.

From a macro perspective, the overall adoption of internet-based products and services was no longer limited to Bengaluru, Delhi-NCR and Mumbai — the top three startup hubs in India. This change in the consumption pattern of the Indian public has thrown open several opportunities for tech-enabled products and services, and they are able to expand their user base beyond the digital borders of the top three startup hubs.

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Indian Tech Startup Funding Report Q1 2021

Quoted & Trusted By

the economist
quartz
forbes
business insider
cb insights
startupindia
the huffington post
the economic times
live mint
the times of india

Key Highlights

$2.7 Bn

Raised By Indian Startups From 268 Funding Deals In Q1 2021

127

Seed Stage Funding Deals Recorded

22%

Of All Startups Funded In Q1 2021 Had A Female Founder

Edtech

The Startup Sector With The Highest M&A Deals In Q1 2021

Table Of Contents

  • Executive Summary
  • Notable Startups Funded In Q1 2021
  • Indian Startup Funding Trends
  • Sector-Wise Startup Funding Analysis
  • Stage-Wise Startup Funding Analysis
  • Hub-Wise Startup Funding Trends
  • Investor Participation Trends
  • Most Active Investors Of Q1 2021
  • Merger And Acquisition Trends

Summary

Bengaluru is widely regarded as the startup capital of India and the investment scenario by the end of Q1 2021 solidifies this claim. Interestingly, out of the 29 quarters between 2014 and Q1 2021, Bengaluru retained the investment top spot in 24 quarters or 83% of the time.

In Q1 2021, the total count of M&A deals across the Indian startup ecosystem stood at 22, which was 16% lower than the quarterly average (Q1 2017-Q4 2020) of 26. Edtech and media and entertainment startups recorded the highest number of mergers and acquisitions in this quarter.

Although there have been significant improvements in startup ecosystems across Tier 2 and Tier 3 cities, the inflow of high-value deals and Tier 1 VC confidence remain a challenge.

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