Monday, 20 September, 2021

Indian startups raised $6.5bn in Apr-Jun

NEW DELHI: Indian startups received about USD 6.5 billion in funding in the April-June 2021 quarter, while 11 of them entered the coveted unicorn club, a report by Nasscom-PGA Labs said.

During the second quarter, 160 funding deals were closed—up 2 per cent from the January-March period, report agencies.

“Q2 2021 has been impeccable for the start-up growth story. From being the most funded quarter, it has also added the most number of unicorns. Standing tall during the pandemic second wave headwinds, Indian start-up ecosystem has shown a strong resilience in this quarter,” the report said.

Funding raised in June quarter was at USD 6.5 billion, up by 71 per cent quarter-on-quarter.

The biggest deal during the quarter was the USD 800 million fund raise by food delivery platform Swiggy, followed by ShareChat (USD 502 million), Byju’s (USD 340 million), PharmEasy (USD 323 million) and Meesho (USD 300 million), the report said.

Pine Labs raised USD 285 million, Delhivery USD 277 million, Zeta USD 250 million, Cred USD 215 million and Urban Company USD 188 million in the June 2021 quarter, as per the report.

“The Indian startup ecosystem that generated 53 unicorns till June 2021 has made great strides in the April-June quarter. From recording most funding deals to adding the most number of unicorns in a quarter, investors’ confidence in good-quality digital businesses has strengthened like never before,” PGA Labs Director, Competitive Intelligence Abhishek Maiti told PTI.

He added that the deal flow looks promising for the latter half too as India opens after series of lockdowns and sectors such as fintech, foodtech and healthtech continue to benefit from pandemic-induced adoption.

Fintech was the most funded sector, accounting for 27 per cent of the total deal value in the reported quarter.