Indian tech startups raise $6 billion in April-June quarter, Fintech rules

Number of deals dropped by 17% sequentially, more than half were larger than $100 million each

Sixteen large-ticket deals helped generate a total funding of $6 billion in the last quarter, as the number of deals dropped by 17 per cent quarter on quarter, according to the Quarterly Investment Factbook Tech Startups  by Nasscon and PGA Labs.

Q2CY22

Funding: $6-bn

Deal Volume: 204 (dropped 17% than Q1 CY22)

Unicorns: 4

Top Funded vertical: Fintech: 26% total funding

Most funded stage: Growth - 58% of total funding

FinTech has emerged as the top funded vertical, followed by Media & Entertainment. The two sectors attracted 45 per cent of total funding by value, led by large ticket deals such as CRED and Dailyhunt.

Funding by stage:

Early: 18%

Growth: 58%

Late: 24%    

Funding by sector:

Fintech: 26%

Media & entertainment: 19%

Enterprise tech: 16%

Retail tech: (9%)

Edtech: (8%)

Health tech: 5%

Agritech: 3%

Mobility: 3%

Others: 11%

Within fintech 60% investment were in growth stage

Payments lead within fintech with $314mn investments

B2C tech startups accounted for 63% of deal value, raising $3.8 billion. The top B2B funded startups were AI and automation enablers such as LeadSquared, Observe.ai and GreyOrange.

Series D accounted for about 20 per cent of total funding owing to deals like Zepto and Rapido.

Series J accounted for about 13% of total funding owing to Dailyhunt deal which accounted for $805 million in Q2CY22  

More than half the deals were larger than $100 million

52% of the deals were larger than $100 million each, while 21% funding was in the $50-100 billion deal range.

The funding was dominated by growth stage startups

Growth stage deals contributed 58 per cent of the total funding in the last four months as the investors backed start-ups which have already reached a certain scale. Funding to growth stage startups stood at 24 per cent, while early stage startups gained 18% of the funding.

Sequoia Capital and Tiger Global the most prominent investors

Sequoia Capital and Tiger Global came out as the prominent investors with involvements in 15 and 14 deals respectively; followed by Alpha wave and Accel, who invested in more than 6+ deals across sectors.