India has been on the VC radar for years, but their interest in the world’s second most populous country took off in 2021.
Investors have pumped $ 23.5 billion into Indian startups so far this year. That’s nearly double what the country’s venture capital ecosystem has raised in the past two years, according to data from PitchBook.
This capital is also helping to create new unicorns at an unprecedented rate. Out of 41 India-based companies valued at $ 1 billion or more, 17 were established this year, a record for the country.
The latest addition to the unicorn herd is Apna, the 2-year-old developer of a blue-collar job recruiting platform that raised a Tiger-led $ 100 million Series C streak last week. Global. In fact, Tiger Global’s capital has helped produce nine unicorns in the country this year.
The investment company’s interest in the country dates back over a decade. Since the start of 2010, around a quarter of Tiger Global’s transactions have taken place in India. The company first backed Indian e-commerce giant Flipkart, which is now valued at $ 37.6 billion, over a decade ago.
Other major investors in Indian startups, such as SoftBank and Singaporean sovereign wealth fund Temasek, are also foreign companies.
The rewards are starting to materialize for some of the country’s startup investors.
Zomato, a food delivery company, went public this summer with a valuation of more than $ 12 billion. Digital payments company Paytm and MobiKwik, a fintech startup, have both announced plans to hit public markets this year.
Investor enthusiasm for the country is unlikely to wane anytime soon. The Chinese government’s authoritarian approach to private companies could continue to bode well for India’s startup ecosystem for some time to come.
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