India has a huge startup ecosystem.
The South Indian city of Bangalore took the lead as the startup hub of India. It ranks 26 in the global startup hub. It is dubbed as India’s Silicon Valley.
The union territory of Delhi and the National Capital Regions was one of the new entrants in the global startup ecosystem ranking 36, tied with several other foreign cities.
The country is home to 21 unicorns that are valued at $73 billion. It is believed that 50 more would join the unicorn club by 2022.
COVID-19 IMPACT ON INDIA’S STARTUP ECOSYSTEM
In India the investment segment tanked when the pandemic hit, demand and supply were severely impacted thus affecting funding of several start-ups.
Funding of companies dropped by 50%, only 69 firms in 2020 received funding compared to 136 firms in 2019.
SIGNS OF RECOVERY
As the Covid-19 pandemic situation seems to be subsiding, funding into Indian startups bounced back strongly in June 2021. First five months of 2021, Indian startups have been able to raise $9.4 billion, this figure is roughly 82% of the funding raised in 2020, $11.5 billion.
The fintech segment dominates the start-up funding scene in India. It has raised 22% of the capital raised this year. This sector has raised more than $2 billion solely this year.
Followed by Fintech we have the Edtech start-ups, they have raised $1.3 billion this year compared to the $447 million in the previous year.
It was Byju’s that took a lead here, raising $460 million so far, thus making it India’s most valuable start up and 11th most valuable start up around the globe.
Currently Byju’s is valued at $16.5 billion. Followed by Byju’s is Paytm valued at $16 billion.
In the 3rd week of June, 2021alone about $784 million has been raised as funding by 24 startups. Byju’s took the lead with $340 million followed by Browserstack with $200 million.
India’s startup ecosystem seems to be having a very vibrant future, several cleantech startups have also been taking root.
About 20% of all startups in incubators are focusing on some form of sustainability. Most of them focus on clean energy.