India Startup Investment 2020: Pandemic Failed To Shake The Confidence Of Investors!

Must Read

Hands-Free Resources: How Businesses Are Using AR to Make Workplaces Safe and Productive

The role of efficiency and ease in the modern world has become forefronted when it comes to technology, particularly...

Top Countries by App Downloads Q2 2021: India Dominates With 7 Billion+ Downloads [REPORT]

As the adoption of smartphones and the Internet has increased over the last decade, so has the number of...

3 Most Common Mistakes Social Media Marketers Are Committing In 2016

In their quest for greater sales and increased ROI, the self-appointed “digital marketing guru” has lost touch with what...

India’s startup ecosystem has largely been unhindered by the pandemic in 2020. The country attracted a lot of eyeballs in terms of investor interest, all thanks to the prowess demonstrated by Indian startups turning unicorns along with the massive private equity investment drive by Reliance Industries.

According to the data collected by consulting firm Praxis Global Alliance, last year saw close to 59 international investors making their debut private equity and venture capital investment in India. 

The global investments came despite all the geopolitical challenges caused by the Galwan Valley Incident, which halted all incoming Chinese investments. The consulting firm highlighted that 2020 saw a 37% rise in global first-time investors, which poured funds into Indian startups compared to 2019, wherein the number stood at 43.

Advertisements

The first time investors, however, is not the only highlights of the total investment in indian startups during 2020.

Besides attracting more foreign investors in the country’s startup ecosystem, Indian startups also witnessed larger bets and raised bigger chunks of capital. Praxis’s data shows that the top 10 international investor entrants in the last year participated in $7 billion worth of deals – much higher than $1.2 billion in 2019. 

Some of the noteworthy instances of global investors tapping into India’s startup potential include sovereign funds like Saudi Arabia’s PIF aka Public Investment Fund which infused a whopping $4 billion in RIL’s Jio Fibre assets, Luxor Capital Group which invested in Zomato, Alkeon Capital backing the homegrown edtech giant Byju’s and South Korea’s NXC Corporation investing in DMI Finance.

Praxis’s data also showed that India saw international investments pouring in from over 15 different countries. Among them, 60% of investors were headquartered in the United States, followed by 7% located in Japan and South Korea. The Middle East region also made up a significant portion of India’s international investor base.

When it comes to the type of startups that attracted the highest number of investment deals by first-time international backers in 2020, they were: consumer apps and platforms (14 deals) and SaaS Software-as-a-Service products along with A.I. or Artificial Intelligence startups which scored 11 deals.

Advertisements

Madhur Singhal, CEO and Managing Partner at Praxis Global Alliance, in a statement about the same, mentioned that Indian internet-based companies are now scaling up rapidly, and this has gotten global investors excited about the future potential of the country. Therefore they wish to participate in India’s startup growth with more enthusiasm.

Furthermore, he also added that one must take note that many experienced fund managers from India who worked at global investment firms have now turned entrepreneurs themselves or set up their own funds as well.

All in all, as of December 2020, India has been home to a whopping 37 unicorns now, 11 of them making it in the coveted ‘$1 billion club’ in the pandemic year itself.

It now remains to be seen what lies ahead for the Indian startup ecosystem as we move into the ‘new normal’ in 2021 and beyond. We will keep you updated on all future developments. Until then, stay tuned.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Zomato To Give Booster Shot To Grofers Now: Eyes On A Big Chunk Of Grocery Delivery Market

After the historic performance with IPO, Zomato is now gearing up for another milestone - to grab a sizeable...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded and unparalleled...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter, with a...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one of the...

More Articles Like This