Bain & Company’s India Venture Capital Report 2021 stated that the flow of venture capital (VC) money continued in India, with prices ranging from $ 10 billion to $ 1 billion in 2020, less than $ 1 billion.
Despite the epidemic, India maintained its position among the top five start-up ecosystems globally, with 7,000 new start-ups set up in 2020 and 12 new unicorns to take the country’s unicorn tribe to 37 Arise
The report, prepared in partnership with the Indian Private Equity and Venture Capital Association (IVCA), highlighted the dramatic impact of COVID-19 in accelerating digital trends in VC’s flow of funds and the establishment of new and digital businesses The sector was reflected.
The top three sectors – consumer technology, SaaS, and fintech – account for about 75% of all total investments, with consumer technology attracting the maximum amount of money, the report said.
Arpan Sheth, partner at Bain & Company and one of the reports, said, “We were exceptional in 2020, as we saw COVID-19 have a tremendous impact on our economy and healthcare system.”
“This adoption continues the trend of trends seen in previous years, including strong flows, a focus on consumer technology and SaaS, and continued growth in start-ups,” he said.
The deal volume increased by 7%, with around 810 VC deals compared to 755 seen in the year 2019, attracting VC investment of $ 11 billion in the year. The report states, “Deal volumes are strong fundamentals for India’s start-up ecosystem with new business models with challenges visible by 2020. ”
In terms of key sectors, consumer tech, SaaS and fintech continued to grow, accounting for 75% of VC investment in 2020 and 14 of 22 deals, which were more than $ 100 million in size. Sub-sectors including entertainment in edtech, foodtech, gaming and media, and consumer technology; Vertical solution within SaaS; And the investments made by the epidemic showed an increase in payments within fintech.
While consumer tech investment has increased by 25% in 2019, there has been a significant increase in the use of EdTech platforms, as well as an average deal size increase in FoodTech compared to 2019, with large investments leading to increased gaming, The report states.
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