Bengaluru
Indian tech startups remain attractive and have raised $7.2 billion in the January-March quarter of calendar 2022, according to a Tech Startup Investment Factbook analysis prepared by Nasscom in partnership with PGA Labs.
The number of deals closed in Q1 CY22 increased by 34% compared to Q4 CY21, however the percentage of funding in large rounds decreased from 68% to 58% in Q1 CY22. Around 81% of funding activity was driven by early-stage and growth-stage deals, according to the study released on Friday.
According to Factbook, Enterprise Tech and FinTech were the top sectors in Q1 CY22 and big ticket deals helped these sectors account for 41% of total funding. More than half, approximately 52%, of financing activity was driven by growth-stage companies. About 58% of funding by deal size was in ticket size of $100 million or more.
The first quarter also saw the emergence of 15 new unicorns in the Indian tech start-up ecosystem, and seven of these companies were from the enterprise tech, fintech, SCM and logistics sectors. Mamaearth, a beauty and personal care brand, was the first to become a unicorn in 2022 with $52 million in funding led by Sequoia Capital, according to the Nasscom study.
RetailTech continued to show good momentum at 8% of total Q1 CY22 funding. E-commerce raised $588 million of total funding. Dealshare and Udaan each raised over $200 million in Q1 CY22.
The report is a quarterly update on tech startups with a strong focus on five verticals: fintech, edtech, retailtech, health tech and enterprise tech.
