Startup funding: Fintechs attract nearly ₹48,000 crore in April-June
PremiumFour new unicorns were created in the reporting quarter compared to 16 during the preceding January–March period.
The fintech industry attracted the majority of the $6 billion (about ₹47,870 crore) investments made during the quarter, according to a report by the industry association Nasscom. According to the research, fintech companies garnered around 26% of all investments made during the quarter, followed by media and entertainment (19%), business technology (16%), retail technology (9%), edtech (8%), and health technology (5%).
Venture capital firms Sequoia Capital and Tiger Global led fundraising in Indian businesses during April to June. Tiger Global and Sequoia made 60% of their investments in firms during their expansion stage.
Forty percent of Tiger Global's overall investments were made in the fintech industry, while twenty percent were made in enterprise technology. About 25% of Sequoia's funding went to corporate technology, while 20% went to fintech.
"Prominent investors Sequoia Capital, Tiger Global, Alpha wave and Accel have done over 6 deals across sectors," it added.
The neobanking company Open, the SaaS platform LeadSquared, the edtech start-up PhysicsWallah, and the online beauty products marketplace Purplle were the only unicorns in the April to June period. Open received $50 million in Series D funding from IIFL, making it the first neobanking unicorn.
While PhysicsWallah raised $100 million in its Series A fundraising from Westbridge and GSV Ventures, LeadSquared raised $153 million in Series C funding from WestBridge Capital to become a unicorn. As part of its Series E funding round, Purplle received $34 million from Paramark Ventures.
Four new unicorns were created in the reporting quarter compared to 16 during the preceding January–March period as a result of a reduction in funding for Indian startups, it said. Due to the macroeconomic downturn, investments in Indian digital companies decreased by around 17% to $6 billion in April–June 2022, according to the research.
Geographical turmoil appears to be affecting Indian entrepreneurs as total funding decreased by 40% to $6.8 billion between April and June. Early-stage deals made up more than 60% of the total, with an average ticket size of $5 million, according to a PwC India report titled "Startup Deals Tracker - Q2 CY22"
The three most significant startup hubs in India are the National Capital Region (NCR), Mumbai, and Bengaluru, which together accounted for around 95% of all fundraising activity in the April-June 2022 quarter, followed by Chennai, and Pune.
(With PTI inputs)
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