Web 3.0 and crypto-based start-ups saw explosive growth raising up to $500M+ in 2021.Within fintech’s record funding in 2021, consumer and SMB-focused neobanks held a significant share.SaaS funding continued to see momentum as several category leaders emerged, addressing unique use cases.Online business-to-business (B2B) marketplaces saw traction as four new unicorns were created-large opportunity size driven by the pandemic-led inflection in digital adoption within B2B supply chains.Within consumer tech, several alternative formats of commerce saw significant funding, such as video commerce, direct-to-consumer (D2C) brand aggregator models, and short-form videos.SaaS specifically saw deal size expansion as marquee Indian unicorns became category-defining leaders globally, such as Postman in API management or BrowserStack in automated testing. These sectors continued to see a significant expansion in deal size, indicative of a maturing landscape. Further, India minted 44 unicorns in the year, becoming the third largest home of unicorns, with 73 privately held active unicorns, after the US (~500) and China (~170).Ĭonsumer technology, fintech, and software as a service (SaaS) continued to account for 75%+ of all VC investments by value (in line with 2020). Similarly, early-stage deals saw a dramatic shift in pace and ticket size, with Series A rounds hitting the $10M+ mark in average deal size. ~20 in 2020), typically as follow-on rounds in market leaders such as Swiggy (online food delivery) and Dream11 (gaming). Most significant, however, was the shift in shape of deal flow as global VCs led 90+ mega rounds of $100M+ (vs. base of 809 in 2020) as well as average deal size (expanding from $12.4M to $24.9M over 2020–21). Total deal value of $38.5B in 2021 was driven by dual impact of ~2x growth in number of deals (1,545 deals vs. “We believe that the Indian tech market has finally hit PMF-a perfect storm of talent, capital, infrastructure, depth in demand, and other enablers is brewing. Further, as Chinese regulators tightened control over the local tech economy (fintech and edtech), capital deployment saw redirection to India. Investing momentum was driven by a significant confluence of factors that were several years in the making: maturing digital infrastructure (Unified Payment Interface -led payment rails, cheap and ubiquitous data access and Aadhar electronic Know Your Customer ), increasing depth in the start-up ecosystem and reinvigorated investor confidence as long-held capital saw significant public and secondary exits, and a positive macroeconomic outlook for India.
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