A two-fold increase from pre-COVID levels, according to a new study by NASSCOM and Zinnov.
Start-ups raised a record $24.1 billion in 2021, more than twice the pre-COVID-19 levels, according to a new study by NASSCOM and Zinnov.
According to the study, ‘Indian Tech Start-up Ecosystem: Year of the Titans’, over 2,250 start-ups were added in 2021, up from 600 over the previous year.
The study said: “Start-ups raised USD 24.1 billion in 2021, which is more than twice the pre-COVID levels. There was a 3-fold increase in the number of high value deals (deals > USD 100 million) as compared to 2020, displaying investor confidence with a pool of 2400+ active angel investors and significant risk appetite.
It states that while the U.S.T. While foreign direct investment (FDI) in start-ups continues to be a major source, worldwide participation is also increasing. About 50% of the deals had at least one Indian-origin investor.
It said more than $6 billion has been raised through public markets with 11 start-up IPOs in 2021. The study noted that the startup ecosystem saw a 2X profit from 2020 to 2021 with estimates of $320-$330 billion in cumulative valuations. Demonstrate the development and recovery of the sector during the pandemic.
“In the last decade, the ecosystem has played a vital role in increasing direct and indirect jobs, providing 6.6 lakh direct jobs and over 34.1 lakh indirect jobs,” it said. BFSI (banking, financial services and insurance), ed-tech, retail and retail tech, food-tech, supply chain management, and logistics and mobility were the industries that created the most new jobs.
On the back of internet commerce, freelancers and service industries, indirect jobs have also recovered, it said.
“The performance of the Indian startup ecosystem in 2021 has proved the resilience and dedication being put into the segment by many startups…. With record-breaking funding, increasing numbers of unicorns, creating jobs in the near term, Indian startup Nasscom President Debjani Ghosh said that the future of the ecosystem in 2022 looks even brighter.
Compared to the UK, US, Israel and China, 2021 has been an excellent year for the Indian startup ecosystem, with the highest growth rate in terms of deals, both seed stage and late stage funding, and the highest number of startups With the growth rate, Jinov CEO Pari Natarajan said.
Mr Natarajan said that Indian firms have done an excellent job of selling in global markets especially in categories like global SMEs (Small and Medium Enterprises) and developer ecosystem.
,