Indian companies raised $ 63 billion from PE-VC investors in 2021

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Indian firms raised a record $ 62.7 billion from venture and private equity firms in 2021 in 1,202 deals, up 57% from $ 39.9 billion. dollars they drew in 913 deals a year ago, according to a new report from Chennai-based research firm Venture Intelligence. Sunday.

Of the total amount raised by local businesses, venture capital investments, classified as late stage start-up financing in businesses less than ten years old, amounted to $ 34.7 billion in 1,070 transactions, or 200% more than 11.4 billion USD out of 795 turns in 2020.

2021 saw eight investments worth $ 1 billion or more, led by Flipkart’s $ 3.6 billion pre-IPO cycle in July 2021, which marked SoftBank’s return to the cap table. of the e-commerce company. The Japanese conglomerate invested $ 2.5 billion in Flipkart in August 2017, but sold its shares a year later when US retailer Walmart acquired the online retailer. Another notable deal worth over $ 1 billion in the Indian startup ecosystem was the $ 1.4 billion fundraiser from edtech decacorn Byju led by Prosus Ventures.

In addition, there were 97 mega-trades – rounds over $ 100 million – worth $ 24 billion last year, up from 28 of those investments worth $ 5.5 billion. dollars in 2020, the report notes.

The massive influx of capital into the country produced 44 unicorns, or billion dollar companies, in 2021, 15 of which entered the elite club in the last quarter of the year, including D2C companies Mamaearth, Good Glamm Group and Licious; the online brand aggregators Global Bees and Mensa; and fintech startups Slice, Upstox and Acko, according to Venture Intelligence.

Source: Business intelligence

According to the report, depending on the industry, IT and IT service companies raised $ 40.7 billion in 2021 from venture capital and private equity investors. Overall, the tech industry recorded 85 investments over US $ 100 million last year, for a total of US $ 31.8 billion.

The BFSI (banking, financial services and insurance) sector raised USD 4.7 billion in 2021, a jump of 74% from the USD 2.7 billion raised the previous year. The health and life sciences industry received around $ 3.2 billion from investors, up 28% from 2020.

The education industry came in fourth, attracting $ 3 billion in 2021, the report notes. Edtech Byju’s company raised the highest amount of capital – around $ 1.9 billion – in 2021, followed by higher education company Eruditus, which raised $ 650 million from investors. Major PE Blackstone’s buyout of the Simplilearn development platform for $ 250 million was the third largest transaction in the rapidly growing education technology sector in the country. Meanwhile, as millions of Indians began transacting online last year, investments in e-commerce companies increased, totaling $ 10.3 billion.

Sequoia Capital India became the most active investor in 2021 with 105 deals in 91 companies, followed by Tiger Global, with 60 investments in 47 companies, according to the report. However, in terms of check size, Tiger Global was the most aggressive, taking part in a third of the $ 100 million rounds during the year.

“As large-scale investments and the unicorn rush grabbed the headlines, the successful IPO of several issuer companies, including Zomato, Nykaa and PolicyBazaar on national stock exchanges,” was one of the main highlights of the Indian PE-VC industry in 2021. Arun Natarajan, founder of Venture Intelligence in a statement. He added that the IPOs, along with a string of successful exits, will help India’s startup ecosystem attract more capital from global investors.

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