Indian startups raised $6.5 bn funding in Q2 2021, 11 new unicorns created

According to a Nasscom-PGA Labs study, Indian companies earned $6.5 billion in investment in the April-June 2021 quarter, with 11 of them joining the coveted unicorn club.

There were 160 financing agreements concluded in the second quarter, up 2% from the January-March period.

“Q2 2021 has been impeccable for the start-up growth story. From being the most funded quarter, it has also added the most number of unicorns. Standing tall during the pandemic second wave headwinds, Indian start-up ecosystem has shown a strong resilience in this quarter,” the report said.

The amount of money raised in the June quarter was $6.5 billion, up 71% over the previous quarter.

Swiggy, a food delivery platform, raised $ 800 million in the quarter, followed by ShareChat ($ 502 million), Byju’s ($ 340 million), PharmEasy ($ 323 million), and Meesho ($ 300 million), according to the article.

According to the study, Pine Labs raised $285 million, Delhivery raised $277 million, Zeta raised $250 million, Cred raised $215 million, and Urban Company raised $188 million in the June 2021 quarter.

“The Indian startup ecosystem that generated 53 unicorns till June 2021 has made great strides in the April-June quarter. From recording most funding deals to adding the most number of unicorns in a quarter, investors’ confidence in good-quality digital businesses has strengthened like never before,” PGA Labs Director, Competitive Intelligence Abhishek Maiti told PTI.

He went on to say that the deal flow for the second half looks positive as India reopens after a series of lockdowns, and industries like fintech, foodtech, and healthtech continue to gain from pandemic-induced uptake.

Fintech was the most well-funded industry in the quarter, accounting for 27% of the overall deal value.

Foodtech (13%) was followed by corporate technology (11%), edtech (10%), and media and entertainment (10%). (8 per cent). According to the report, growth stage investment accounted for 61% of the overall deal value.

Approximately 100 businesses got seed investment, accounting for 9% of the total amount raised.

Urban Company, Cred, Meesho, Groww, ShareChat, PharmEasy, Zeta, BrowserStack, Moglix, Gupshup, and Chargebee were among the 11 unicorns (businesses valued at $1 billion) that emerged in the June 2021 quarter.

As of June 2021, the country’s overall number of unicorns had risen to 53.

Fintech companies accounted for over 27% of the unicorns added in the second quarter of 2021, while SaaS (software as a service) and social commerce each accounted for 18%, according to the study.

Tiger Global, interestingly, invested in 64% of unicorns in the second quarter of 2021.

B2B startups raised over $ 1.9 billion in 85 deals, with an average deal size of $ 22 million, according to the study.

Zeta, Razorpay, and Axtria were the top three B2B financed businesses.

Over $ 4.2 billion was funded by B2C firms in 75 transactions, with an average deal size of $ 56 million.

Swiggy, ShareChat, and Byju’s are the top three B2C financed businesses, according to the study.

29 agreements totaled $ 450 million in funding for DeepTech businesses.

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