Setting new records, Indian start-ups raise over $10 bn in Q3CY21: PwC

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October 19, 2021 3:00 AM

Indian tech start-ups raised a quantum of $10.9 billion in capital during the third quarter (Q3CY21) across 347 deals, which is approximately a two-fold rise compared to the same period last year.

However, fintech, edtech and SaaS remained the top-most funded sectors in CY21, together accounting for approximately 47% of the total funding activity.However, fintech, edtech and SaaS remained the top-most funded sectors in CY21, together accounting for approximately 47% of the total funding activity.

Indian start-ups have set new funding records in Q3 of CY21, with investments crossing the $10 billion mark during the quarter, consultancy firm PwC India said in a report on Monday.

Indian tech start-ups raised a quantum of $10.9 billion in capital during the third quarter (Q3CY21) across 347 deals, which is approximately a two-fold rise compared to the same period last year.

PwC India report titled, “Startup Perspectives — Q3 CY21” also pointed out that funding activity had heightened across all start-up verticals sectors, both in terms of value as well as volume.

Approximately 84% of the funding activity was driven by growth and late-stage deals. However, these represented approximately 39% of the total deal activity (count terms).

Around 61% of the total deal activity consisted of early-stage funding (seed, pre-series, angel) rounds amounting to $1.6 billion with an average ticket size per round of $4 million, according to the PwC report. Start-ups in pre-IPO stages such as Ola, Droom, and Pine Labs have also raised around $880 million in capital in CY21.

However, fintech, edtech and SaaS remained the top-most funded sectors in CY21, together accounting for approximately 47% of the total funding activity.

The fintech sector saw a four-fold increase in funds raised in the first three quarters of CY21 when compared to the first three quarters of CY20. Around six fintech companies including BharatPe, OfBusiness, Zeta, Groww, CRED, and Digit Insurance attained unicorn status in the same year.

In the first three quarters of 2021, fintech startups raised a total of $4.6 billion, a three-fold increase from $1.6 billion in 2020. Investments worth $2.5 billion across 53 deals were recorded in Q3CY21 across various stages of investment. Fintech startups in the insurance, wealth management and neobanks segment particularly saw renewed interest from investors this year.

Amit Nawka, Partner, Deals & Startups Leader, PwC India, said that the Indian start-up’s ecosystem saw its average deal size increase and quicker funding rounds which have led to a surge in deal activity across sectors, since early this year.

“This data may not come as a surprise as headlines prominently featured the news of newer start-ups disrupting the status quo. In the first three quarters of 2021, 371 new companies attained unicorn status. With the increased funding activity and rise in valuations, the global decacorn (companies valued over 10 billion) list is inching towards 40. These companies are largely headquartered out of the US and China/Hong Kong. So far, two privately held start-up companies in the decacorn list are from India,” added Nawka in a statement on Monday.

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