Indian startups raise $10.9 billion in July-September: Report

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According to a PwC India report, Indian startups received a record funding of $ 10.9 billion across 347 deals in the third quarter 2021. While comparing with the second quarter of 2021, the amount funded was 41% higher and is twice the amount of funding received in the third quarter of the calendar year 2020. The report Startup Perspectives, third quarter, 2021  said that an increase in funding activity was witnessed across all sectors in terms of value and volume.

But, FinTech, EdTech and SaaS are the top three hot investment sectors in the calendar year 2021, together accounting for approximately 47% of the total funding activity.

FinTech segment recorded the highest investment

In the FinTech space, investments worth $4.6 billion were recorded in the first three quarters of 2021, which is an approximate increase of three times from $1.6 billion in 2020.

It said that across various stages of investment in the third quarter of the current year, investments worth $2.5 billion for 53 deals was closed in the FinTech segment were recorded.

The report further said that approximately 84% of the funding activity was driven by growth and late-stage deals. About 61% of the total deal activity consisted of early-stage funding rounds for $1.6 billion (average ticket size per round $4 million).

During the first three quarters of both the previous year and current year, the total funding activity constitutes 76-78% of contribution from Bengaluru and NCR, followed by Mumbai and Pune, the report said.