Indian Start-ups raised a record $24.1 billion in 2021

Tags: Economics/Business

According to the Nasscom-Zinnov report released on 21st January 2022, Indian startups raised a record $24.1 billion in 2021, a two-fold increase over pre-Covid levels, while $6 billion were raised via public markets with 11 startup IPOs.

  • The Indian tech startup base continues to witness steady growth, adding over 2250 startups in 2021, which is 600 more than 2020.
  • India, accounting for 70 unicorns, added a record number of new unicorns (42) in 2021 across 18 sectors, third-highest after the US and China, with a cumulative valuation of newly-added unicorns standing around $90 billion.
  • “In comparison to 2020, there was a 3X increase in the number of high-value deals (deals over $100 million), demonstrating investor confidence,” according to the Nasscom-Zinnov report.
  • The US remains the leading source of foreign direct investment in start-ups.
  • The start-up ecosystem saw a 2X gain in cumulative valuation from 2020 to 2021, with an estimate of $320-$330 billion, demonstrating the sector’s development and recovery throughout the pandemic.
  • In comparison with the United Kingdom, the United States, Israel and China, 2021 has been an outstanding year for the Indian Start-up ecosystem.
  • Established start-up centres like Delhi-NCR, Bengaluru, Chennai, Pune, Hyderabad and Mumbai account for 71 percent of all startups.
  • Outside of the developing start-up centres like Jaipur, Kochi, Kolkata, Chandigarh, and others, 29 percent of all startups are located.
  • At least one-woman founder/co-founder is present in 12-15 percent of start-ups and 10 unicorns.
  • In terms of maturity and investments, BFSI, Retail and Retail Tech, Enterprise Tech, and EdTech reign supreme.

About Nasscom

The National Association of Software and Service Companies (Nasscom) is an Indian non-governmental trade association and advocacy group focused mainly on the technology industry of India.

Chairperson: U.B. Pravin Rao

President: Debjani Ghosh

Headquarters: New Delhi

About Zinnov

Zinnov is a global management consulting and strategic advisory firm that works across the globe in the areas of Globalization, Digital Engineering, Global Talent, and Transformative Technologies.

CEO and Founder: Pari Natarajan

Headquarters: Santa Clara, California, USA

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