India’s startup ecosystem, which bounced back from the COVID-19 induced slump in the second half of 2020, is seeing an increased interest from global investors.
Homegrown startups raised USD 3.65 billion in the first quarter of 2021, an increase of 13.4% over the corresponding period last year, local media Economic Times (ET) said, citing data from intelligence platform Tracxn. Another research firm, Venture Intelligence, puts this number at USD 4.2 billion, 40% higher than that in the first quarter of 2020 when Indian startups raised USD 3.5 billion.
After the pandemic hit early last year, Indian startups suffered a major funding crunch as VCs held on to their money to ensure their portfolios have enough runway for 12 to 18 months. However, as digital adoption in the country spiked due to mobility restrictions and tech startups figured out a way to ride that wave, investors opened their wallets and started pursuing deals in the latter half of 2020.
The rush was such that there were almost two dozen new global VC firms, including Bond Capital, Bellerive Capital, Makers Fund, and American Family Ventures that entered India last year, according to Venture Intelligence data.
Read More at https://kr-asia.com/indian-startups-see-rising-inflow-of-capital-from-global-investors