Indian tech startups raised a record $14.5B in 2019

Indian tech startups have never had it so good. Local tech startups in the nation raised $14.5 billion in 2019, beating their previous best of $10.5 billion last year, according to research firm Tracxn . Tech startups in India this year participated in 1,185 financing rounds — 459 of those were Series A or later…

Indian tech startups have by no means had it so just right.

Native tech startups within the country raised $14.five billion in 2019, beating their earlier best possible of $10.five billion ultimate yr, consistent with analysis company Tracxn .

Tech startups in India this yr participated in 1,185 financing rounds — 459 of the ones had been Collection A or later rounds — from 817 buyers.

Early degree startups — the ones taking part in angel or pre-Collection A financing spherical — raised $6.nine billion this yr, simply surpassing ultimate yr’s $3.Three billion determine, consistent with a document by means of undertaking debt company InnoVen Capital.

In keeping with InnoVen’s document, early degree startups that experience usually struggled to draw buyers noticed a 22% year-over-year build up within the choice of financing offers they took section on this yr. Cumulatively, at $2.6 million, their valuation additionally greater by means of 15% from ultimate yr.

Additionally in 2019, 128 startups in India were given received, 4 were given publicly indexed, and 9 was unicorns. This yr, Indian tech startups additionally attracted a report choice of world buyers, consistent with Tracxn.

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This yr’s fundraise additional strikes the country’s burgeoning startup area on a trail of secure enlargement.

Since 2016, when tech startups amassed simply $4.Three billion — down from $7.nine billion the yr ahead of — glide of capital has greater considerably within the ecosystem. In 2017, Indian startups raised $10.Four billion, consistent with Tracxn.

“The last decade has observed an excellent 25x enlargement from a tiny $550 million in 2010 to $14.five billion in 2019 in relation to the entire investment raised by means of the startups,” mentioned Tracxn.

What’s similarly promising about Indian startups is the demanding situations they’re starting to take on lately, mentioned Dev Khare, a spouse at VC fund Lightspeed Mission Companions, in a contemporary interview to TechCrunch.

In 2014 and 2015, startups had been in large part serious about construction e-commerce answers and replicating concepts that labored in Western markets. However lately, they’re tackling a wide-range of classes and alternatives and construction some answers that experience no longer been tried in some other marketplace, he mentioned.

Tracxn’s research discovered that accommodation startups raised about $1.7 billion this yr — because of Oyo by myself bagging $1.five billion, adopted by means of logistics startups reminiscent of Elastic Run, Delhivery, and Ecom Categorical that secured $641 million.

176 horizontal marketplaces, greater than 150 schooling studying apps, over 120 trucking marketplaces, 82 ride-hailing products and services, 42 insurance coverage platforms, 33 used automotive record suppliers, and 13 startups which might be serving to companies and folks get admission to operating capital secured investment this yr.

The buyers

Sequoia Capital, with greater than 50 investments — or co-investments — was once probably the most energetic undertaking capital fund for Indian tech startups this yr. (Rajan Anandan, former govt accountable for Google’s trade in India and Southeast Asia, joined Sequoia Capital India as a managing director in April.) Accel, Tiger World Control, Blume Ventures, and Chiratae Ventures had been the opposite most sensible 4 VCs.

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Steadview Capital, with 9 investments in startups together with ride-hailing carrier Ola, schooling app Unacademy, and fintech startup BharatPe, led the best way amongst personal fairness finances. Normal Atlantic, which invested in NoBroker and just lately grew to become winning edtech startup Byju’s, invested in 4 startups. FMO, Sabre Companions India, and CDC Crew every invested in 3 startups.

Mission Catalysts, with over 40 investments together with in HomeCapital and Blowhorn, was once the highest accelerator or incubator in India this yr. Y Combinator, with over 25 investments, Sequoia Capital’s Surge, Axilor Ventures, and Techstars had been additionally very energetic this yr.

Indian tech startups additionally attracted a variety of direct investments from most sensible corporates and banks this yr. Goldman Sachs, which previous this month invested in fintech startup ZestMoney, total made 8 investments this yr. Amongst others, Fb made its first funding in an Indian startup — social-commerce company Meesho and Twitter led a $100 million financing spherical in native social networking app ShareChat.