Indian startups raised more than $7 billion in funding between Oct-Dec 2021: Nasscom-PGA report

New Delhi: Indian startups raised more than $7 billion in funding during the fourth quarter of 2021 (October- December) up 18% compared to the third quarter, while 14 of these companies entered the ever-expanding unicorn club, a report by Nasscom-PGA Labs said. Unicorns are privately-held startups valued at $1 billion or more.

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The number of deals closed in the October- December quarter increased around 52% and stood at 184 compared to 121 in the third quarter, the report added. Fintech and retail tech were the most funded sectors, accounting for 24% and 23%, respectively, of the total deal value in the reported quarter.

“Fintech continues to develop its legacy and penetration into the startup ecosystem. Growing infrastructure stack, innovative solutions and new business models will continue to keep this sector in limelight,” the report said. Six out of the 14 unicorns added in the quarter were from the retail tech and fintech sectors.

The Nasscom-PGA report also highlighted that the surge in online retail came on the back of massive digital adoption in the country due to the ongoing health crisis.

The biggest deal during the quarter was the
$400 million fundraise by Cars24, an online marketplace for used cars, followed by
Razorpay ($375 million),
PharmEasy ($350 million), Nykaa ($300 million) and
Spinny ($283 million), the report said.

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Growth-stage funding accounted for 56% of the total deal value, however, they represented just 34% by deal count, it added. According to the report, 68% of deals by value were in the ticket size of $100 million or more.

Business-to-business (B2B) startups raised over $1.6 billion across 72 deals, with an average deal size of around $22 million. According to the report, Razorpay, Zetwerk and Ninjacart were the top-funded B2B startups. While business-to-consumer (B2C) startups raised over $5.6 billion across 112 deals, with an average deal size of $51 million with Cars24, PharmEasy and Nykaa being the top-funded startups in the sector.

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