Start-Up VC Funding Up By 4.5% In India

Leading data and analytics company Global Data in its report said that India has witnessed 39 per cent Year-On-Year (YoY) growth in Venture Capital (VC) funding during the first half of 2022.

“At a time when the start-up ecosystem in China is losing steam, Indian start-ups seem to be gaining investors’ confidence. India witnessed a whopping 39 per cent YoY growth in Venture Capital (VC) funding deal volume to 976 during the first half of 2022. The corresponding disclosed funding value too clocked a 4.5 per cent rise to USD 15.6 billion.”

An analysis of GlobalData’s Financial Deals Database reveals that deal activity in 2022 so far has showcased a fluctuating trend in India. However, June managed to reverse the month-on-month decline in funding value with a massive 76 per cent growth, whereas deals volume increased by 0.7 per cent in June compared to the previous month.

Aurojyoti Bose, Lead Analyst at GlobalData said, “India witnessed a positive trend in both VC funding value and volume in first half of 2022 compared to first half 2021 while several other key markets such as the US and China experienced decline. The Indian start-up ecosystem seems to be evolving as a promising alternative to China.”

India witnessed the announcement of several big-ticket deals during H1 2022. Some of the prominent deals announced during the period include USD 805 million funding raised by Verse Innovation, USD 800 million series F funding raised by Think and Learn (Byju’s), USD 700 million funding raised by Bundl Technologies (Swiggy), USD 450 million funding raised by Polygon, and USD 300 million funding raised by Xpressbees.

Total Funding Received By Indian Start-ups Of India In The Year 2021-2022

Indian start-ups raised more than USD 11.8 Billion across 506 funding deals in January to April resulting in USD 53.8 Billion. As the first quarter of 2022 ends, we are observing two large trends in Indian start-up funding. The overall funding in the first quarter of 2022 is significantly higher than last year’s. As per the last year’s data released by Fintrackr, total investments that pumped into Indian start-ups were nearly USD 38 billion in 2021 which was USD 11.1 billion in total funding that start-ups received during 2020.

Last week, 33 Indian start-ups raised funding, of which 25 received a total of about USD 461 million. OneCard and 5ire were the top fundraisers which scooped up USD 100 million each. Last week, 25 homegrown start-ups raised funding worth about USD 89.69 million. 

Meanwhile, the funding of eight of the total funded start-ups remained undisclosed. 

Six growth and late-stage start-ups have raised their new round which include OneCard’s USD100 million unicorn round and healthtech start-up LifeWell’s  USD 80 million Series C round. The list also includes Detect Technologies, Vegrow, String Bio and Wysa.