Topics In Demand
Notification
New

No notification found.

Q3CY2021: A Quarter of Steady Funding and Growth for Start-ups
Q3CY2021: A Quarter of Steady Funding and Growth for Start-ups

November 23, 2021

2953

0

Q3CY2021: A Quarter of Steady Funding and Growth for Start-ups  

This year has been special for the start-up ecosystem from many perspectives:

  • Highest funding received in first 3 quarters of 2021
  • Highest number of unicorns added in 2021

Above 2 parameters are a strong indication of how start-up ecosystem is growing and strengthening its root with time. India start-up ecosystem is also becoming resilient to global turmoil and economic instability. Q3CY2021 again turned to be a strong quarter for the start-ups. Key highlights:

Funding:

  • Indian start-ups remain attractive, raised >US$ 6B in two consecutive quarters in CY21
  • 75% of the total funding driven by 14 large deals (> US$ 100 M) in 3Q CY21
  • 91% of the funding activity driven by growth and late-stage deals
  •  ~6% fall in Q3 CY21 deal value compared to Q2 CY21
  • ~50% of funding activity driven by late-stage companies. However, they represented just 9% by deal count

Deals

  • The number of deals closed in Q3 CY21 decreased by ~24% compared to Q2 CY21
  • ~6% fall in Q3 CY21 deal value compared to Q2 CY21
  • 75% deals by value were in the ticket size of US$ 100M or above
  • Lower ticket size deals dominate; 14 deals were of ticket size >US$ 100M compared to 19 in Q2 CY21
  • 69% of deal activity was driven by early-stage innovative start-ups (deal size remains small)

Business Model

  • B2C start-ups led the race in deal value: B2C start-ups raised over US$ 4.7B across 70 deals while B2B start-ups raised over US$ 1.4B across 51 deals
  • B2B observed average deal size of ~US$ 27M while B2C start-ups observed an average deal size of ~US$ 67M

Investors

  • Prominent investors 3One4 Capital, Sequoia Capital and Tiger Global have done 16+ deals across sectors
  • Tiger Global has majorly invested in 3 sectors- FinTech, Ed Tech and Retail Tech

Deeptech Focus

  • DeepTech start-ups raised ~US$ 80M across 18 deals in Q3 CY21
  • 15% of deals by volume catering to start-ups leveraging DeepTech solutions

Numbers above are good enough to represent another strong quarter for the start-up ecosystem. If India continues to see more such quarters, the definitely we can expect many new records in the near future.

For details please read a recently published report on NASSCOM PGA Labs Tech Start-ups: Quarterly Investment Factbook:

https://community.nasscom.in/index.php/communities/productstartups/nasscom-pga-labs-tech-start-ups-quarterly-investment-factbook-q3-cy21

 

 


That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.


© Copyright nasscom. All Rights Reserved.