The coronavirus epidemic – and some other factors – is a slow deal for startups in India this year.
than them A record $ 14.5 billion fund last year, Indian startups ending 2020 with about $ 9.3 billion. According to consultancy firm Traxxn, this is the first time since 2016 that a startup in India, one of the largest startup communities in the world, has raised less than $ 10 billion a year.
The number of deals declined from 1,185 last year to 1,088 in 2020. There were also less oversized rounds. In 2011, it fell by 10 million dollars or more from 20 in 2019 (this round was $ 3.6 billion this year compared to last year, compared to $ billion.5 billion last year) Telecom giant Jio Platforms do not include investment, which alone raised more than $ 20 billion this year.
Despite the recession, Indian startups saw substantial rebounds in the second half of this year. Tracxn said that startups in the world’s second-largest Internet market in the first half had raised just $ 4.2 billion in about 461 deals.
In addition to coronoviruses, which have affected startups worldwide, another factor that was one of the influencing factors was the absence of – or reduced participation of – some of the largest investors.
Chinese giants such as Alibaba – and its associate ant group – and Tencent wrote Low check this year To Indian startups Amidst tension in between Two neighboring nations. SoftBank gave less capital in the form of several of its high-profile portfolio firms, with Paytm, Oyo Rooms and Ola not raising money.
But the virus also accelerated the development of some startups. Byju is now Worth more than $ 11 billion, From above $ 8 billion in January this year. Unacademy, another high-profile startup in the online learning space, Made two trips At the height of the epidemic, its value soared to nearly $ 500 million in February this year. More than $ 2 billion.
Bond, a firm started by Mary Meeker and other high-profile investors, This year supported Byju. Bond believes that Byju will cost more than $ 30 billion in three years, a man briefed by the investment firm told TechCrunch. Many startups in India SaaS is working on the model And also catering to customers worldwide Caught pace this year.
11 Indian startups, including RazerPay Unacademy, Dailyhunt, and Glance became a unicorn this year. (On a side note, Google and Facebook wrote several checks to Indian firms this year. Google Last week Glance and DailyHunt supported, While Facebook Unacademy has invested in. Both firms also This year Jio has invested in Platforms.)
“I’ve seen the old (unfortunately!) Recession of 2001 and 2008, so when Kovid hit and there were stories of doom and despair everywhere, I remembered what I saw in the last recession – one of the teams The introduction of a new generation that built the next generation of companies, “said Vaibhav Domkundavar, Founder and Managing Partner on Better Capital. Better Capital, which supports early-stage startups in India, saw 43 investments and follow- Write on check.
M&A activities also picked up this year. byju’s Acquired Whitehat Jr. for $ 300 million, While Unacademy Acquired, Which offers courses for medical students in July for $ 50 million. It also led to a $ 5 million round of investment to acquire a majority stake in Mastri.
Reliance Industries acquires online pharmacy Nedmed and In the sale of fire, the urban ladder.
But for the first time, Indian startups are on the verge of seeing another kind of exit. Zomato, Flipkart, And policy markets are among the few startups Plans to go public next year. Bernstein analysts have identified Paytm, Byju’s, PhonePe and Delhivery, which may be public by 2022.