Start-up funding in India has grown at a rapid pace in the last five years with investment values increasing at a CAGR of more than 57% while total number of investments have increased at a CAGR of over 62%, according to a latest report by Grant Thornton. The report, which looks at or below Series B stage funding, lists increase in smaller value transactions due to higher seed and angel rounds as the key reason for the growth numbers.
While the average deal ticket size moderated to some extent in 2015, at least three start-ups received more than $100 million in funding. Also, five start-ups raised more than $ 50 million each. Among the large-ticket size investors, Warburg Pincus, Rocket Internet and Goldman Sacs figured prominently, whereas investors like Accel Partners, Blume Ventures, Tiger Global, Kalaari Capital, SAIF Partners, Sequoia Capital, IDG Ventures, the Indian Angel and Mumbai Angel Network continued to dominate the market by funding the most number of start-ups.
Among the sectors listed in the report, consumer-focused start-ups raised around 58% of total investments with a cumulative funding of $1.2 billion. Among B2C start-ups that received the most investments were companies in segments like food tech, discovery platforms and retail. A number of start ups in the logistics sector received close to $ 262 million in investments.