This is good news for all Indian citizens that India’s startup ecosystem has created a record in the last financial year. A record investment of more than $ 30 billion in privately held companies in 2021. This is only because of demand for digitization grew manifold amid the Covid pandemic.
The analysis is done by a UK-based Investment data platform PREQIN. This platform estimated that the private equity investments have been increased by 300% compared to the last year’s $11 billion.
In 2021-22, the volume of seed-stage deals dominated with more than 400 deals. The aggregate is nearly $700 million. And series A investments amounted to nearly $1.5 billion. The PREQIN showed that the maximum investment has been done in pre-IPO financing rounds in startups like Zomato, Ola, Policybazaar, Paytm, etc. In this area, the total amounted to more than $5 billion.
No doubt it’s a ray of hope for new India’s dream, which can accelerate the economic growth of India. On one side the pandemic of COVID 19 was very much destructive but on another side, no one could guess the advantages of digitization demand which has multi-folded the investment in startups. As a result, these startups have been able to snag higher valuations and can double their value in successive financing rounds.
