Companies

Indian start-ups attract $10.14 b in funding in 2020

PTI New Delhi | Updated on January 26, 2021

Indian start-ups are estimated to have received $10.14 billion in funding across more than 1,200 deals in 2020 despite the Covid crisis, a report by consulting firm HexGn said.

Even though the total investment received in 2020 is lower than that of 2019 ($14.5 billion), the number of deals were higher by 20 per cent, the report said.

“Weathering negative sentiment, seed stage investment deals grew by 50 per cent from $353 million over 420 deals in 2019 to $372 million over 672 deals in 2020. This is a good sign for people looking to plunge into start-ups, as early-stage investors are now keen to back risk-takers early on,” the report noted. This can be attributed to the work done by Invest India, Startup India, AgNii and other agencies of the Indian government to boost investor confidence and entrepreneurial culture, it added.

This is the third year in a row that India has kept its number four position globally after the US, China and the UK.

Globally, start-ups raised over $308 billion in funding, with the US garnering $165 billion.

The report said Bengaluru, Delhi NCR and Mumbai accounted for 90 per cent of the start-up investments in the country, signalling concentration of angel investors and appetite in these regions.

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Published on January 26, 2021
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