18 Jan, 2022 Indian startups see fourfold year-on-year rise in VC funding to $33.7bn in 2021, reveals GlobalData
Posted in Business FundamentalsIndian startups never had it this good when it comes to attracting venture capital (VC) funds. In fact, India’s startup ecosystem has witnessed a record fourfold increase in VC funding to $33.7bn in 2021, as demand for digitization grew manifold amid the COVID-19 pandemic, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Financial Deals Database reveals a total of 1,698 VC funding deals were announced in India during 2021.
There was a jump of 52% and 302% in deal volume and value, respectively, in 2021 compared to the previous year. However, the month-on-month funding trend remained inconsistent throughout in 2021. In fact, December witnessed month-on-month growth in deal volume but witnessed decline in deal value.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Despite the inconsistent trend, 2021 remained a great year for startups in India with the year also seeing the birth of a record number of unicorns. Another interesting thing to note is the announcement of 85 deals with funding value more than or equal to $100m, which accounted for just around 5% of deal volume but close to 70% of the funding amount.”
Some of the notable VC funding deals announced during 2021 in India include $3.6bn funding raised by Flipkart in July, $840m raised by Dream Sports in November, $570m funding raised by Fashnear Technologies (Meesho) in September and $500m funding raised by Zomato in January.