Indian startups are seeing a record of funding despite the difficult situation caused by the COVID-19 pandemic. As reported, startups in India have raised almost $ 3.76 billion across 257 deals in the first quarter ending March 2021. At the beginning of April, the startups saw13 mega-rounds of investments of more than $100 million, which two rounds more than that in March.
The first quarter (Q1) 2021 witnessed a breakthrough in terms of deals and funding as both were highest across the past consecutive five quarters. Similarly, in April 2021, the funding got even better as compared to the previous month. Within April, startups got 2.8 times more funding, up from $ 1.6 billion in March to $ 4.6 billion.
According to data available with IndiaTechDesk, in the first quarter of 202, there were ten mega-rounds of investment valued at more than $100 million and amounting to $ 2.12 billion. In the first quarter of 2020, there were eight rounds of funding. In April 2021 alone, there were13 big tickets round with 110 deals. The second week of April made a big difference in the startup funding, as $2.5 billion was invested across 34 deals.
Startup funding trend 2021
Gaming startups are back to reclaim their lost position with Dream 11 raising $ 400 million in funding. The sector is performing well with Nazara Technologies’ IPO listing and MPL in a queue to enter the unicorn club this year. The industry attracted investors raising around $ 544.53 million across ten deals this year.
With Meesho raising $ 300 million in a round led by SoftBank, at a valuation of $2.1 billion and PharmEasy raising $ 323 million in a Series E funding round, there is a valuation of $ 1.5 billion in a Series E funding round a rush to enter the unicorn club this year. Few startups that got the unicorn tag are CRED, Groww, Sharechat, raising $ 215 million, $ 83 million, and $ 502 million respectively this year to get the title.
Another trend that is heating up fast is the IPO gold rush. In the first quarter of 2021, Nazara Technologies made a strong debut in the Indian stock market. The IPO was subscribed four times on the first day as retail investors latched on to India’s first gaming IPO. Several of India’s category-defining unicorns and soon-to-be unicorns— Flipkart, Zomato, Ola, Delhivery, Freshworks, Policybazaar, Nykaa — are also looking to go for an IPO in 2021.
Another sector that has performed well with lockdowns and remote working is the Edtech sector. In the quarter ending on March 2021, India’s largest edtech startup BYJU’S completed the acquisition of coaching center chain Aakash Educational Services reportedly for $ 1 billion. Also, Vedantu acquired Instasolv while Unacademy acquired Tapchief and Handa Ka Funda.