Deeptech start-ups witnessed 1.6 times the growth in equity investment in 2021 over the previous year , with over 270 unique start-ups raising $2.7 billion in 319 deals in 2021, according to the latest report by NASSCOM.
Artificial intelligence, Big Data, and Analytics were the top technologies to raise equity investments. Increased interest from equity investors and venture capital firms led to strong fundamentals for scaled start-ups, and seed stage start-ups. According to the report, seed stage start-ups saw 2.3 times jump in equity investments in 2021 , raising $186 million.
“These start-ups have not only defied the odds with extraordinary innovation and exceptional leadership but are also playing a vital role in creating solutions for sustainability goals – from smart manufacturing to reliable healthcare. The ecosystem has also fortified the country’s job creation with over 4,000 people being employed across 14 potential Deeptech Unicorns and is expected to increase by 2X in headcount by 2026,” said Debjani Ghosh, President, NASSCOM.
With over 3,000 deeptech start-ups as of 2021, the ecosystem grew at a rate of 53 per cent compounded annual growth rate (CAGR) in the last 10 years, growing at par with the Indian tech start-ups. The ecosystem added over 210 new deeptech start-ups in the calendar year 2021.
More start-ups emerged in the industry to address global mega challenges such as clean tech, zero hunger, smart cities, and climate action, accelerating India’s path to achieving sustainable development goals across segments, said the release.
The National Association of Software and Services Companies (NASSCOM), in partnership with Zinnov, a global management and strategy consulting firm, launched its first in-depth Deeptech start-up report, titled, “India’s Deeptech Start-ups – Poised for Impact”.