Investments in Indian start-ups plunge 84% in August

Annapurani. V | | Updated on: Dec 06, 2021

Edtech, fintech sectors among the most funded

Investments in Indian start-ups tumbled 84.2 per cent year-on-year in August. It fell to $306.46 million last month, against $1,937.24 million in August 2019, according to data from Tracxn, a firm that tracks investments and financials of private companies and start-ups.

The number of companies that were funded also fell by almost half. Only 67 companies were funded last month, against 121 in August 2019.

The top-funded sectors included edtech ($152.5 million), fintech ($57.49 million), enterprise applications ($36.16 million), logistics tech ($25.70 million), media and entertainment ($17.04 million).

The consumer sector, which encompasses online and technology-enabled consumer-facing companies in the business-to-consumer (B2C) space, raised $61.14 million.

On the other hand, sectors such as real estate and construction tech ($2.97 million), technology ($11.24 million), travel and hospitality tech ($11.40 million), and retail ($16.97 million) were among the least-funded sectors in August 2020.

Furthermore, sectors such as healthtech, autotech, life sciences and enterprise infrastructure did not receive any funding last month. The investment data excludes debt, grant and post IPO rounds.

Top-funded companies

While BYJU'S, Lead School, Turtlemint, Fresh to Home and FarEye were the top five funded companies in August 2020, the most active investors – based on the number of deals during the month – included AngelList, Better Capital, Inflection Point Ventures, Y Combinator and 3one4 Capital.

Published on September 03, 2020
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