Start-up funds in India have been rising for 2021. The first 100 days of the year have already produced ten unicorn firms worth more than a billion dollars or more – compared to 11 in 2020. Between April 3-April In particular 9 2021 saw frenetic activity, with $ 2.65 Billion earning on 21 deals, according to data from Venture Intelligence.
For 4 consecutive days between April 5-8 they made six unicorns. Of these, four were supported by Tiger Global and 3 were sponsored by Sequoia India, which is also the largest investor in Indian startups this year.
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The main factors that drive the explosion :
Send a plague, a new leaf. While the Covid-19 epidemic has crippled all companies and some companies are still recovering, most online companies have just intensified. The increase in Internet users as people live at home has led to the rapid growth of all online services – from commercial to paid to software. Investors are betting on this growth to continue.
Tiger is roaring again- Tiger Global, an American investor known for his early bet on Flipkart is driving this current madman alone. It has earned or invested in the unicorn segment this year – Groww, Cred, ShareChat, Infra.Market, Innovaccer and Gupshup, and many more to come. Its aggressive product of post-tender tenders, short-term support for competitors and the increase in entry-round prices – is back.
Capital everywhere- Almost every major business fund raised a fund dedicated to India last year, including Sequoia, Accel and Lightspeed. Some are accumulating, and even those who do not have Indian funds volunteer increase their share in India, and hire local investors – the signing of long-term plans.
What after China and US?
China’s global economic downturn and a volatile market have led many investors to re-evaluate their strategies. These investors – VCs, hedge funds, pension funds, etc. – seem to bet that India is the next big market emerging where online companies can get it very quickly. It is also one of the largest consumer markets with emerging players and the US and China have grown significantly and are already dominated by positions. India’s huge size and increasing internet availability give starters a huge TAM (total market value) to play in.
For a very long time, start-up IPOs in India have become a cone. Companies have spoken of them as a distant target but no real desire for transparency has been seen. The following year, at least 3-4 companies – Zomato, Nyka, Delivery and Poly bazaar are expected to go public, prompting a new wave of funding given that startups are finally showing the exit of investors.