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Last 11 weeks for start-up Investments: Ups and Downs
Last 11 weeks for start-up Investments: Ups and Downs

May 20, 2021

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Last 11 weeks for start-up Investments: Ups and Downs

Are we out of COVID? Well everybody is looking for this answer and frankly, the investors which regularly invest in Indian start-ups are also looking for the answer to the same question. But do investors keep in mind the Indian COVID situation while investing in a start-up? Well, we cannot answer that completely but numbers might give us some sense.  

Let’s decode how Indian start-up funding shaped up from March 2021 till the 2nd week of May 2021. Frankly, the 3 months have been positive but jittery. A camel hump pattern is clearly visible during this period.

 

Highlights:

  • Total Funding in 11 weeks: ~$6700 mn
  • Record highest funding in 1 week (Highest ever in the history): $2650 mn
  • Mammoth deals:
    • Byju’s - $1000 mn
    • Swiggy - $800 mn
    • Sharechat-$502 mn
    • Dream11 - $400 mn
    • Pharmeasy-$350 mn
    • Pinelab- $285 mn
    • Urban Company - $188 mn
    • RazorPay - $160 mn
    • Druva - ~ $150 mn

 

  • Out of 13 unicorns in 2021, more than 50% turned unicorn in these 11 weeks

So, overall the funding scenario looks to be quite euphoric. But is it right to say that when India was coming out of COVID’s first wave and things were getting back to normal from January onwards, investors showered their blessing on start-ups. But the scenario changed post-mid-April when COVID 2nd wave hit India, and investor’s interest reduced a bit. Well, it’s difficult to comprehend anything around this.

A lot can be said on the investor’s mindset:

  • Strong trust in Indian start-ups
  • The rising ticket size for growth stage start-ups
  • Few investors showing continued interest: Tiger Global, Falcon Edge
  • Tiger global invested in 9 out of 13 unicorns in 2021

So, it difficult to comprehend the large difference in the funding overall these weeks. But one thing is for sure, investors are not going to leave their strong trust on the start-up ecosystem even after many more waves of a pandemic. The Indian start-up ecosystem is strong and will continue to be the same.

 

Source: Entrackr, Inc42, Yourstory

 


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