Indian Startups Raised $63 Billion Since 2016, Prompted 27 Unicorns
India emerges as the third-largest tech startup ecosystem in the world with capital inflows amounting to $63 billion during the period 2016–20. The country has fostered 27 unicorns during the period, according to the data collected by the Indian Private Equity and Venture Capital Association.
Startups raised $34 Billion in 2019 and another $17 billion in 2020 till May. Ecommerce and tech startups have attracted investments even during the pandemic owing to the innovative and sustainable solutions they offer.
The Government of India is also playing a crucial role in boosting investment and is paving the path for India to become a startup hub. Initiatives, like Make in India, Startup India, and Standup India, have supported startups with infrastructure, technological advancement, and funding.
Rajat Tandon, President IVCA (Indian Private Equity and Venture Capital Association) said, with various new and innovative ventures making headway, the growth stage startup and venture capital ecosystem is poised for the next leap. The report provided perspective on the trends set by the startup. It stated that Bangalore, Delhi-NCR, and Mumbai are together home to 55–58% of the start-ups.
The local ecosystem is maturing and is tackling a wide range of categories that were not addressed earlier. India’s bilateral ties with various nations have improved and foreign investors are seeding capital in Indian startups. This is a fortunate time for the Indian startup ecosystem as countries are readily seeking an alternative to China and there is huge support from the Government side.