Indian tech-start-ups raised $15.7 billion in the three quarters of CY22. Additionally, the volumes of deals grew by 78 per cent to 215 by the end of September this year compared to 121 in the year-ago quarter, according to a report by IT and technology-focused association, National Association of Software and Service Companies (NASSCOM).
The report which gave an overview of how the third quarter of CY2022 fared revealed that while fintech was the most active sector when it came to cracking funding deals, the other pie of the market was grabbed by enterprisetech, healthtech, edtech and more.
“This quarter was dominated by growth-stage deals, indicating investor confidence in these sectors,” the report stated.
Fintech grabs the funding pie
In this quarter, fintech companies alone raised 37 per cent of the total deal value and even added a unicorn (OneCard) in its kitty. Furthermore, start-ups dealing in payments, collection, and the lending spaces turned out to be favourites of the investors as they contributed about 48 per cent to the overall fintech funding value.
The report also highlighted that India added 26 unicorns in all this year and five unicorns in the July-October quarter including OneCard, 5ire, Tata1mg, Shiprocket and Molbio. Notably, despite the funding crunch in the ecosystem, blockchain start-up 5ire and fintech company Onecard raised $100 million each in Series A and D rounds respectively to clinch the unicorn status. Additionally, the largest fund raise was done by edtech start-up upGrad valued at $210 million from investors such as Kaizenvest, Temasek Holdings, and International Finance Corporation.
Besides, on the investor front, the maximum deals were cracked by Blume Ventures (15), followed by Sequoia India (12), Accel (11), Beenext (10), Better (9), and more.
Among the major mergers and acquisition deals that happened in Q3, Razorpay’s acquisition of Ezetap topped the charts. This deal which happened in July this year was valued at $200 million.
This report considered only tech start-ups which are working towards innovation in technology, business process or business model. These start-ups have received funding from VCs or PEs. Additionally, they are headquartered in India or the core development of their product happens in India.
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