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Tech Start-ups: Quarterly Investment Factbook – Deal Analysis(Q2 CY22)

July 15, 2022 15647 1 Product/Startups

Tech Start-ups: Quarterly Investment Factbook – Deal Analysis(Q2 CY22)

“Tech Start-ups: Quarterly Investment Factbook” is NASSCOM’s and PGA Labs quarterly funding update on Tech Start-ups highlighting key trends and facts about the Indian tech Start-up ecosystem during the quarter. It covers funding details by volume, value, stage, and other metrics. Includes a separate section on five key verticals- EdTech, HealthTech, RetailTech, EnterpriseTech and FinTech that highlights key trends and themes reflecting the different strategies adopted by ecosystem players. Covers an analysis of the outperforming vertical during the quarter, media & entertainment.

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Key Highlights

Start-up Funding maintained momentum despite the relative slump in funding:

  • US $6 Bn funding received in this quarter down by ~17% Q-o-Q
  • Deals also dropped by ~17% due to dampened market sentiments
  • Despite reduction in deal value, funding in growth stage continues to increase

 

Growth stage funding on investor’s radar:

  • Number of growth-stage deals have held ground due to strong fundamentals for scaled start-ups
  • 52% funding by deal size was in the ticket size of US$ 100M
  • Average ticket size (~US$ 29M) remained consistent

 

Vertical trend analysis:

  • FinTech and Media & Entertainment were the top sectors attracting ~45% of total funding
  • ~88% funding in RetailTech and ~74% funding in Edtech went to growth stage start-ups
  • Media & Entertainment turned out to be an outperforming vertical, >90% of the sector funding went to late stage

 

Other Key Trends:

  • 4 unicorns added in this quarter one each in Edtech, Fintech, SaaS and online marketplace sectors
  • B2C tech start-ups funding accounts for ~63% of the total ~US $6 Bn
  • ~60% of the start-ups in which Tiger Global and Sequoia invested are in growth stage

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