Covid has seemingly managed to place a slight dent on investments in Indian startups in 2020 as investors poured 21.3 per cent significantly less danger capital in the outgoing year from 2019. Venture capital (VC) investors, private equity (PE) players, corporates, accelerators, angel investors, and other people collectively place more than $11.4 billion this year (second highest annual deal worth in the decade), down from $14.5 billion in 2019, according to the information shared by Tracxn. However, the fall in annual deal volume or the quantity of rounds was significantly less serious as startups participated in 1,152 funding rounds in 2020 vis-à-vis 1,185 in 2019. The investments in 2020 have been led by $800 million raised by Byju’s followed by $700 million secured by Walmart’s PhonePe, and $660 million invested in Zomato across many rounds.
While the investor neighborhood had adopted a wait-and-watch stance towards producing new investments in startups, several have been also focused on making certain their portfolio businesses narrow down costs to concentrate on core organization as Covid-associated burn was factored in. However, regardless of Covid and the following unlock phases, investors overcame the barrier of closing bargains physically and switched to virtual discussions as the latter became the new normal. Investors such as Sequoia even introduced a programme to assistance startups and share and study from the experiences of other productive entrepreneurs. Another fund Chiratae Ventures launched the new edition of their Innovator’s Program to assistance early-stage startups even though IvyCap Ventures launched the third edition of Futurance programme.
In truth, Covid enabled B2C segments such as edtech, grocery, healthcare, and foodtech progressively to multiply their attain for the duration of the lockdown. According to Tracxn, edtech bagged $1.7 billion – maximum funding for the duration of 2020 even though the meals delivery sector received $1.4 billion. Digital wallets segment with players such as PhonePe, MobiKwik, actual cash gaming platforms such as MPL, WinZO, on-line restaurants such as Biryani By Kilo, Box8, and e-commerce logistics firms such as XpressBees, Vinculum Solutions have been other major markets that caught investor interest.
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Among best VCs have been Sequoia with more than 40 investments, Accel with practically 30 investments, followed by Inflection Point Ventures, Matrix Partners India, and Blume Ventures even though PE investments have been dominated by Mayfield with seven investments, six investments every single by WestBridge and General Atlantic, and 5 every single by DST Global and Faering Capital. Tencent with 11 investments, Vistra ITCL (6), Amazon (4), Info Edge (4), and Google (3) have been best corporates backing Indian startups in 2020.
In terms of best startup hubs for the duration of the 2018-20 period, Bengaluru remained on best with a 45 per cent share of funding raised by startups. Delhi NCR (such as Noida and Gurugram) had a share of 37 per cent even though Mumbai managed with only 11 per cent. 2020 saw 12 new unicorns, taking the total tally to 42, according to the report. FirstCry, Cars24, Pine Labs, Unacademy, Zenoti, DailyHunt, Nxtra Data, Postman, Razorpay, Glance, Nykaa, and Zerodha have been businesses getting into the hallowed $1 billion private industry valuation club.