VCs And PEs Are Crushing On Indian Startups To Bestow Funds

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While funding was seen trickling down for startups recently, a record number of India-focused VC and PE funds was seen raising fresh funding for tech startups, beating all previous year records.

Big Boom!

VC funds raised a whopping $14.1 billion to pump into startups in the first half of 2022. 

The 3X growth is in contrast to last year when VC funds raised only $4.2 billion in capital for Indian startups.

Here’s another. 

This year, 76 new funds were launched in the country compared with just 28 last year!

Sequoia India’s $825-million growth fund, Elevation Capital’s Fund VIII worth $670 million, Accel India’s 6th fund worth $550 million are amongst the biggest fundings witnessed.

Plans Galore

In another, VC marquees Sequoia India, SoftBank, Multiples Alternate Asset Management, among others, have joined hands with the Internet and Mobile Association of India (IAMAI). 

The new formation will work on public policy consultations, stakeholder engagement, ecosystem enhancement, and building a strong industry network for VC firms.

Plans to provide a platform for the VC community where IMAI can highlight the collective issues like the direct foreign listing of Indian startups, clarification on gift tax, and taxation on ESOPs will also take shape soon. 

These big tech investors have advised their portfolio firms to join the government’s Open Network for Digital Commerce (ONDC) to understand its potential impact on ecommerce in India.

Next up, we found that Indian startups raised around $19 billion in funding during the first half of 2022. 

This comes at a time when the Russian invasion of Ukraine, rising inflation rates, and policy rates turned investor sentiment negative, which has also hit the Indian startup ecosystem.

Nevertheless, there’s no backing down for Indian startups. 

After all, our startup heroes moved India to the 3rd spot on the global map of countries with the most unicorns

We’re already beaming with pride!

Amidst these testing times, the Indian startup ecosystem also saw a surge in M&A count, reaching an all-time high of 165 in H1 2022.

Too long? Here’s a one-liner: VC and PE investors have joined IMAI to work on public policy consultations, stakeholder engagement, ecosystem enhancement, and building a strong industry network; Indian startups witness the biggest funding raised in H1 2022.




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